PA10. LO 10.5 Calcion Industries produces two joint products, Y and Z. Prior to the...

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Accounting

PA10. LO 10.5 Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $36,000. Product Y weighs 25 pounds and product Z weighs 75 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z.

Solution

Product Y pounds:

Product Z pounds:

Total pounds:

Product Y allocation:

Product Z allocation:

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