Question

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	$

Answer 1

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