Question

Vest Softhed Amar Company manufactures for products from a joint production process: barton, see picene, and cool The int costs for one barch are as follows: Direct materials $75,000 Direct labor Overhead 27.000 the s oft pot buche 2.000 2.500 pace, and can $17 punts Required: Allocate the joint co n g the wes value at off method if required, round action rates to four decimal round the final allocations to the rest olla Allocated in Cost Barton (Note: The total of the allocated cont may not actual total costs to due to rounding)

Answer 1

	WORKING NOTES: 1
	CALCULATION OF TOTAL COST JOINT PRODUCTS
		Direct Material	$75,000
		Direct Labor	$37,000
		Overhead	$27,000
		Total	$1,39,000
	WORKING NOTES: 2
	CALCULATION OF TOTAL SALES AND RATIO OF ALL 4 PRODUTCS
			Sales Value	Ratio
		Barlon (2000 Units X $ 17)	$34,000	11.22%
		Selene (3000 units X $ 24)	$72,000	23.76%
		Placence(2900 Units X $ 26)	$75,400	24.88%
		Corsol (3200 Units X $ 38)	$1,21,600	40.13%
		Total	$3,03,000	100.00%
	SOLUTION :
		ALLOCATION OF JOINT COST
		Barlon ( $ 139,000 x 11.22%)	$15,597
		Selene ($ 139,000 X 23.76% )	$33,030
		Placence($ 139,000 x 24.88%)	$34,589
		Corsol ( $139,000 x 40.13%)	$55,783
		Total	$1,39,000