Question

Physical Units 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 $62,460 Direct labor 34,046 Overhead 24,046 At the split-off point, a batch yields 1,921 barlon, 2,668 selene, 2,561 plicene, and 3,522 corsol. All products are sold at the split-off point: barlon sells for $16 per unit, selene sells for $20 per unit, plicene sells for $24 per unit, and corsol sells for $32 per unit. Required: 1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error. Allocated Joint Cost Barlon 14,347 X Selene Plicene Corsol Total 2. Suppose that the products are weighted as shown below: Barlon 1.0

Answer 1

	Total Joint Cost
		Direct Materials			62460
		Direct Labor			34046
		Overhead			24046
		Total			120552
	1)	Allocation Of Joint Cost Using Physical Unit Method
		Product	Units	Weight	Joint Cost
		a	b	c=b/10672	d=c*120552
		Borlon	1921	0.18	21699
		Seiene	2668	0.25	30138
		Pilcene	2561	0.2399	28920
		Corsol	3522	0.33	39782
		Total	10672	0.9999	120540		Diff due to Rounding Off
	2)	Joint Cost As Per Given Weight
		Product	Given Weight	Joint Cost
		a	b	c = b/7.2*120552
		Borlon	1	16743
		Seiene	2.1	35161
		Pilcene	1.7	28464
		Corsol	2.4	40184
		Total	7.2	120552