Question

# Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene,...

Physical Units 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 \$67,900 Direct labor 34,000 Overhead 25,500

At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for \$15 per unit, selene sells for \$20 per unit, plicene sells for \$26 per unit, and corsol sells for \$35 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

 Allocated Joint Cost Barlon \$ Selene Plicene Corsol Total \$

2. Suppose that the products are weighted as shown below:

 Barlon 1 Selene 2 Plicene 1.5 Corsol 2.5

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

 Allocated Joint Cost Barlon \$ Selene Plicene Corsol Total \$

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

 Physical unit Allocation percent allocated joint cost Barlon 1400 14% 17836 Selene 2600 26% 33124 Plicene 2500 25% 31850 Corsol 3500 35% 44590 Total 10000 127400

2) Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

 Physical unit Weight factor Weighted no of units Allocable percent Allocated joint cost Barlon 1400 1 1400 0.0733 9338 Selene 2600 2 5200 0.2723 34691 Plicene 2500 1.5 3750 0.1963 25009 Corsol 3500 2.5 8750 0.4581 58362 Total 19100 127400