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	$70,500
Direct labor	31,000
Overhead	25,500

At the split-off point, a batch yields 1,700 barlon, 2,900 selene, 2,800 plicene, and 3,600 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $21 per unit, plicene sells for $28 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.

	Allocated Joint Cost
Barlon	$
Selene
Plicene
Corsol
Total	$

Answer 1

Product	Units	Per unit	Sales Amount	individual Sales/ total sales	Total cost	Allocated joint cost
barlon	1,700.00	$     17.00	$      28,900.00	0.16	$ 179,000.00	$                 28,900.00
barlon	2,900.00	$     21.00	$      60,900.00	0.34	$ 179,000.00	$                 60,900.00
plicene	2,800.00	$     28.00	$      78,400.00	0.44	$ 179,000.00	$                 78,400.00
corsol	3,600.00	$       3.00	$      10,800.00	0.06	$ 179,000.00	$                 10,800.00
	11,000.00		$   179,000.00