Physical Units Method Alomar Company manufactures four products from a joint pro
ID: 2342521 • Letter: P
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:
At the split-off point, a batch yields 1,990 barlon, 3,234 selene, 3,358 plicene, and 3,856 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 $37 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.
2. Suppose that the products are weighted as shown below:
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.
Direct materials $71,169 Direct labor 38,336 Overhead 23,749Explanation / Answer
1. Allocate the joint costs using the physical units method
2) Joint cost allocation :
Product Joint cost Allocation ratio Allocated joint cost Barlon 133254 1990/12438 21320 Selene 133254 3234/12438 34647 Plicene 133254 3358/12438 35976 Corsol 133254 3856/12438 41311 Total 133254