SalesValueatSplitoff Method Alomar Company manufactures four

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 36,000 Overhead 26,000 At the split-off point, a batch yields 1,700 barlon, 2,300 selene, 2,200 plicene, and 4,000 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 $30 per unit, and corsol sells for $38 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.

Solution

Answer

Products Yield at split off point (in units) Sale rate per unit at split off point Sale Value
Barlon 1700 18 30600
Selene 2300 22 50600
Plicene 2200 30 66000
Corsol 4000 38 152000
Allocation of joint costs using the sales-value-at-split-off method
Products Cost formula Allocated costs
Barlon 122000*30600 / 299200 12477
Selene 122000*50600 / 299200 20632
Plicene 122000*66000 / 299200 26912
Corsol 122000*152000 / 299200 61979
Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs

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