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

4.3 Ratings (623 Votes)


Answer 1
Allocation of the joint costs using the physical units method.
Products	Calculation	Allocated Joint Cost
Barlon	= $1,27,298 x 10.0019%	$12,732
Selene	= $1,27,298 x 22.0023%	$28,008
Plicene	= $1,27,298 x 23.0015%	$29,280
Corsol	= $1,27,298 x 44.9942%	$57,277
Total	$127,298

Working
Ratio of allocation using physical units
Products	No.of units	Proportion
Barlon	1041	10.0019%
Selene	2290	22.0023%
Plicene	2394	23.0015%
Corsol	4683	44.9942%
Total	10408	100.0000%

Total Joint Cost = $64755 + $35387 + $27256 = $1,27,398

Answer 1
Allocation of the joint costs using the weighted average method
Products	Calculation	Allocated Joint Cost
Barlon	= $1,27,298 x 17.1053%	$21,775
Selene	= $1,27,298 x 25.0000%	$31,825
Plicene	= $1,27,298 x 22.3684%	$28,475
Corsol	= $1,27,298 x 35.5263%	$45,224
Total	$127,298

Working
Ratio of allocation using weights
Products	Weights	Proportion
Barlon	1.3	17.1053%
Selene	1.9	25.0000%
Plicene	1.7	22.3684%
Corsol	2.7	35.5263%
Total	7.6	100.0000%

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Other questions asked by students