Sales-Value-at-Split-off Method Alomar Company manufactures four products from a

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: Direct materials Direct labor Overhead $67,900 34,000 25,500 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: barlorn 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.

Explanation / Answer

Calculate allocation of joint cost :

Sale value at split off point Ratio Allocation of joint cost Barlon 21000 8.0614% 10270 Selene 52000 19.9616% 25431 Plicene 65000 24.9520% 31789 Corsol 122500 47.0250% 59910 Total 260500 100% 127400

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