Question

Sales-Value-at-Split-off Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

Direct materials	$60,000
Direct labor	34,000
Overhead	26,000

At the split-off point, a batch yields 1,400 barlon, 3,200 selene, 3,100 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $21 per unit, plicene sells for $26 per unit, and corsol sells for $40 per unit.

Required:

Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.

	Allocated Joint Cost
Barlon	$
Selene
Plicene
Corsol
Total	$

(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)

Answer 1

Solution: