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 $64,500
Direct labor 35,000
Overhead 26,500

At the split-off point, a batch yields 1,000 barlon, 2,200 selene, 2,100 plicene, and 4,000 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $24 per unit, plicene sells for $26 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.

Respuesta :

Solution :

Total Joint Cost

Material             = $ 64,500

Labor                 = $ 35,000

Overhead          = $ 26,500

Total joint cost   = $ 126,000

Products Units SP at Split Sales  % Sales    Joint cost     Allocated Joint Cost

Barlon     1000          17     17,000   7.88%     126,000         10001.99

Selene    2200         24    52800  23.03%    126,000         29249.5

Plicene   2100         26      54600  25.02%   126,000         31771.01

Corsol     4000        38     152000   44.08%  126,000         55977.5

                                         302200   100.00%  126000        127000