Question

In: Accounting

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 $68,628
Direct labor 36,803
Overhead 27,634

At the split-off point, a batch yields 1,872 barlon, 2,753 selene, 2,643 plicene, and 3,744 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $18 per unit, plicene sells for $27 per unit, and corsol sells for $32 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. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

Allocated Joint Cost
Barlon $
Selene
Plicene
Corsol
Total $

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

Barlon 1.2
Selene 2.1
Plicene 1.2
Corsol 2.3

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 $

Solutions

Expert Solution

Total joint cost of all the products to be calculated is calculated as below

The joint costs for one batch are as follows:
Direct materials $ 68,628
Direct labor $ 36,803
Overhead $ 27,634
Total Joint Cost $133,065

Requirement 1 Allocation of joint cost on the basis of physical units method is as following

ALLOCATED JOINT COST IS AS FOLLOW ON THE BASIS OF PHYSICAL UNITS METHOD
PRODUCT Allocated Joint Cost
Barlon $22,621
Selene $33,266
Plicene $31,937
Corsol $45,241
Total$ $133,065
Detailed calculation are shown in the following table for allocation of Joint Cost on the basis Of Physical Units Method
Physical Units Percentage calculation Percentage Allocation of Joint Cost Allocated Joint Cost
Barlon 1872 =1872*100/11012 16.9996 =16.9381% of $133065 $                      22,620.57
Selene 2753 =2753*100/11012 25.0000 =24.0044% of $120954 $                      33,266.25
Plicene 2643 =2643*100/11012 24.0011 =23.0038% of $120954 $                      31,937.05
Corsol 3744 =3744*100/11012 33.9993 =39.9935% of $120954 $                      45,241.13
Total$ 11012 $                   133,065.00

Requirement 2. Allocation of Joint Cost on the basis of Weighted Average Unit Method

ALLOCATED JOINT COST IS AS FOLLOW ON THE BASIS OF WEIGHTED AVERAGE UNITS METHOD
PRODUCT Allocated Joint Cost
Barlon $15,089
Selene $38,832
Plicene $21,303
Corsol $57,841
Total $133,065
DetAIled calculation are shown in the following table for allocation of Joint Cost on the basis Of Weighed Average Units method
Physical Units Weights Assigned weighted units = units=weights Percentage calculation Percentage Allocation of Joint Cost Allocated Joint Cost
Barlon 1872 1.2 2246.40 =2246.40*100/19810.50 11.3394 =11.3394% of $133065 $                  15,088.83
Selene 2753 2.1 5781.30 =5781.30*100/19810.50 29.1830 =29.1830% of $133065 $                  38,832.37
Plicene 2643 1.2 3171.60 =3171.60*100/19810.50 16.0097 =16.0097% of $133065 $                  21,303.30
Corsol 3744 2.3 8611.20 =8611.20*100/19810.50 43.4679 =43.4679% of $133065 $                  57,840.51
Total$ 11012 19810.50 $                133,065.00

FEEL FREE TO ASK ANY CLARIFICATION IF ANY REQUIRED KINDLY PROVIDE FEED BACK BY THUMBS UP IF SATISFIED IT WILL BE HIGHLY APPRECIATED

THANK YOU

ekkarill92 answered 3 months ago
Next > < Previous

Related Solutions

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 $64,581 Direct labor 36,854 Overhead 24,940 At the split-off point, a batch yields 1,315 barlon, 3,024 selene, 3,549 plicene, and 5,258 corsol. All products are sold at the split-off point: barlon sells for $16 per unit, selene sells for $19 per unit, plicene sells for $25 per unit, and corsol sells...
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 $63,318 Direct labor 37,313 Overhead 25,003 At the split-off point, a batch yields 1,104 barlon, 2,809 selene, 2,608 plicene, and 3,511 corsol. All products are sold at the split-off point: barlon sells for $13 per unit, selene sells for $21 per unit, plicene sells for $28 per unit, and corsol sells...
#1-Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene,...
#1-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 $73,968 Direct labor 36,296 Overhead 22,612 At the split-off point, a batch yields 1,135 barlon, 2,993 selene, 2,580 plicene, and 3,612 corsol. All products are sold at the split-off point: barlon sells for $12 per unit, selene sells for $19 per unit, plicene sells for $27 per unit, and corsol sells...
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The...
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 $75,000 Direct labor 35,000 Overhead 25,000 At the split-off point, a batch yields 1,700 barlon, 2,400 selene, 2,300 plicene, and 3,600 corsol. All products are sold at the split-off point: barlon sells for $18 per unit, selene sells for $22 per unit, plicene sells for $25 per unit, and corsol sells for $37 per...
Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and...
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 $67,900 Direct labor 34,00 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...
Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and...
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 $73,500 Direct labor 39,000 Overhead 26,000 At the split-off point, a batch yields 1,900 barlon, 2,200 selene, 2,100 plicene, and 4,000 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $22 per unit, plicene sells for $28 per unit, and corsol sells for...
JOINT PRODUCTS/SPLIT-OFF Blanchard Manufacturing Company manufactures four products from a joint production process. Each product may...
JOINT PRODUCTS/SPLIT-OFF Blanchard Manufacturing Company manufactures four products from a joint production process. Each product may be sold at split-off or processed further.      Sales Value                       Sales Values and Costs if Product      Units Produced         at Split Off                               Processed Further______                                                                                          Sales Value                Added Costs 1                     50,000                     $215,000                   $235,000                   $15,000 2                      25,000                       $60,000                    $98,000                      $22,000 3                      19,500                     $180,000                   $207,000                      $30,000 4                       8,700                       $22,000                     $39,000                      $8,000 Which product(s) should be processed...
7.26 Sales-Value-at-Split-off Method Allocate the joint costs using the sales-value-at-split-off method. Alomar Company manufactures four products...
7.26 Sales-Value-at-Split-off Method Allocate the joint costs using the 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 $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...
Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production...
Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls. 1. What is the amount of joint costs allocated to Dulls using the physical...
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run...
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product         Gallons Further Processing Cost per Gallon Eventual Market Price per Gallon L-Ten         3,200 $0.40   $2.50   Triol         3,700 1.10 5.00 Pioze         2,300 1.60 6.30 Required: 1. Allocate the joint cost to L-Ten, Triol,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT