Sales-Value-at-Split-off Method Alomar Company manufactures four products from a
ID: 2397424 • Letter: S
Question
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:
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:
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.
(Note: The total of the allocated cost does not equal actual total costs to rounding.)
Direct materials $67,900 Direct labor 34,000 Overhead 25,500Explanation / Answer
Total Joint cost: Material 67900 Labour 34000 Overheads 25500 Total Joint cost: 127400 Schedule Showing Allocation of Joint cost Product Units SP at split Sales value at split % of Total sales value Joint cost Allocation of JC Barlon 1400 15 21000 8.0614% 127400 10270 Selene 2600 20 52000 19.9616% 127400 25431 Plicene 2500 26 65000 24.9520% 127400 31789 Corsol 3500 35 122500 47.0250% 127400 59910 Total 260500 100.0000% 127400
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