Physical Units Method Alomar Company manufactures four products from a joint pro
ID: 2520984 • 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 1,400 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.
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 $67,900 Direct labor 34,000 Overhead 25,500Explanation / Answer
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.
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 Allocation percent allocated joint cost Barlon 1400 14% 17836 Selene 2600 26% 33124 Plicene 2500 25% 31850 Corsol 3500 35% 44590 Total 10000 127400