General Chemical produced 12,000 gallons of Breon and 32,000 gallons of Baron. J

Question

General Chemical produced 12,000 gallons of Breon and 32,000 gallons of Baron. Joint costs incurred in producing the two products totaled $7,000. At the split-off point, Breon has a market value of $8.00 per gallon and Baron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Breon if the value basis is used.

A company has two departments, A and B that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. A had a direct expense of $1,000 for deliveries and Dept. B had no direct expense. The indirect expenses are $8,000. The analysis also indicates that 50% of regular delivery requests originate in Dept. A and 50% originate in Dept. B. Departmental delivery expenses for Dept. A and Dept. B, respectively, are:

Explanation / Answer

1) $4200

reason: 7000/160000*96000 = 4200

2) $5000. $4000

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