Sales-Value-at-Split-off MethodAlomar Company manufactures four products from a jointproduction process: barlon, selene, plicene, and...Sales-Value-at-Split-off...

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Accounting

Sales-Value-at-Split-off 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 $73,500
Direct labor 39,000
Overhead 26,000
At the split-off point, a batch yields 1,900 barlon, 2,200selene, 2,100 plicene, and 4,000 corsol. All products are sold atthe split-off point: barlon sells for $17 per unit, selene sellsfor $22 per unit, plicene sells for $28 per unit, and corsol sellsfor $35 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-offmethod. If required, round allocation rates to four decimal placesand round the final allocations to the nearest dollar.
Allocated Joint Cost
Barlon $
Selene
Plicene
Corsol
Total $
(Note: The total of the allocated cost may not equalactual total costs to due to rounding.)

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3.5 Ratings (453 Votes)

Allocated Joint Cost

Barlon	(138,500 / 279,500) * 32,300 = 16,006
Selene	(138,500 / 279,500) * 48,400 = 23,984
Plicene	(138,500 / 279,500) * 58,800 = 29,137
Corsol	(138,500 / 279,500) * 140,000 = 69,374
Total	(138,500 / 279,500) * 279,500 = 138,500

Total cost = $(73,500+39,000+26,000) = $138,500

Sales value:-
	Yields	Price per unit	Sales value
Barlon	1,900	17	32,300
Selene	2,200	22	48,400
Plicene	2,100	28	58,800
Corsol	4,000	35	140,000
Total sales value			279,500

Allocated Joint Cost = (Total cost / Total sales value) * Sales value of product

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In: AccountingSales-Value-at-Split-off MethodAlomar Company manufactures four products from a jointproduction process: barlon, selene, plicene, and...Sales-Value-at-Split-off MethodAlomar Company manufactures four products from a jointproduction process: barlon, selene, plicene, and corsol. The jointcosts for one batch are as follows:Direct materials$73,500Direct labor39,000Overhead26,000At the split-off point, a batch yields 1,900 barlon, 2,200selene, 2,100 plicene, and 4,000 corsol. All products are sold atthe split-off point: barlon sells for $17 per unit, selene sellsfor $22 per unit, plicene sells for $28 per unit, and corsol sellsfor $35 per unit.Required:Allocate the joint costs using the sales-value-at-split-offmethod. If required, round allocation rates to four decimal placesand round the final allocations to the nearest dollar.Allocated Joint CostBarlon$SelenePliceneCorsolTotal$(Note: The total of the allocated cost may not equalactual total costs to due to rounding.)