Stark Chemical Company's production process for two of its solvents can be diagrammed as follows:...
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Stark Chemical Company's production process for two of its solvents can be diagrammed as follows: solvent A = 9,300 gallons joint input - 15,000 gallons solvent B = 5,700 gallons split-off point The cost of the joint input, including processing costs before the split-off point, is $285,000. Solvent A can be sold at split off for $19 per gallon and solvent B for $31 per gallon Requirements Allocate the $285,000 joint cost to solvents A and B by the physical-units method. 2. Allocate the $285,000 joint cost to solvents A and B by the relative-sales-value method. 1. Requirement 1. Allocate the $285,000 joint cost to solvents A and B by the physical-units method. (Round the weighting to two decimal places.) Allocation of Gallons Weighting joint costs Solvent A Solvent B Requirement 2. Allocate the $285,000 joint cost to solvents A and B by the relative-sales-value method. (Round the weighting to two decimal places.) Relative sales value Allocation of joint costs at split-off Weighting Solvent A Solvant B
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