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Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and...

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Accounting

Physical Units Method

Alomar Company manufactures four products from a jointproduction process: barlon, selene, plicene, and corsol. The jointcosts for one batch are as follows:

Direct materials$63,318
Direct labor37,313
Overhead25,003

At the split-off point, a batch yields 1,104 barlon, 2,809selene, 2,608 plicene, and 3,511 corsol. All products are sold atthe split-off point: barlon sells for $13 per unit, selene sellsfor $21 per unit, plicene sells for $28 per unit, and corsol sellsfor $33 per unit.

Required:

1. Allocate the joint costs using the physicalunits method. If required, round your percentage allocation to fourdecimal places and round allocated costs to the nearest dollar.Note: The total of the allocated cost does not equal to the oneprovided in the question data due to rounding error.

Allocated Joint Cost
Barlon$
Selene
Plicene
Corsol
Total$

2. Suppose that the products are weighted asshown below:

Barlon1.2
Selene2.0
Plicene1.3
Corsol2.4

Allocate the joint costs using the weighted average method. Ifrequired, round your percentage allocation to four decimal placesand round allocated costs to the nearest dollar.

Allocated Joint Cost
Barlon$
Selene
Plicene
Corsol
Total$

Answer & Explanation Solved by verified expert
4.2 Ratings (618 Votes)

Allocation of Joint Cost under Physical unit method
Physical unit
(A)		 Allocation rate
(B= Total A / A)		 Joint cost
(C )		 Allocated Joint cost
(BXC)
Barlon 1104 11.00% $465,634.00 $51,242.02
Selene 2809 28.00% $465,634.00 $130,379.38
Plicene 2608 26.00% $465,634.00 $121,049.99
Corsol 3511 35.00% $465,634.00 $162,962.62
Total 10032 $465,634.00
Joint Cost= 63318+377313+25003=465634
Allocation of Joint Cost under Weighted method
Physical unit
(A)		 Weighted
(B)		 Weighted Physical Unit
(C=AXB)		 Allocation rate
(D= Total C/ C)		 Joint cost
(E )		 Allocated Joint cost (DXE)
Barlon 1104 1.2 1324.8 7.06% $465,634.00 $32,883.00
Selene 2809 2 5618 29.95% $465,634.00 $139,444.97
Plicene 2608 1.3 3390.4 18.07% $465,634.00 $84,153.47
Corsol 3511 2.4 8426.4 44.92% $465,634.00 $209,152.56
Total 10032 18759.6 $465,634.00

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