Alpha manufactures mulch and wood bark from a joint processing operation using w

Question

Alpha manufactures mulch and wood bark from a joint processing

operation using wood as the raw material. For a recent month, 8,000

pounds of mulch were produced having a sales value at the split-off point of

$21,000. 4,000 pounds of wood bark were produced having a sales value

after split-off of $14,000. Using the net- realizable-value method, the portion

of the total joint product costs allocated to mulch was $12,000.

1.The amount of joint costs allocated to wood bark using the net-realizable-

value method would be: ________________.

2.If the physical-measures method of allocation were used, the amount of

joint costs allocated to mulch would be: ________________.

Explanation / Answer

1 Joint costs allocated to wood bark = 12000/21000*14000= 8000 2 Total joint costs = 12000+8000 = $20000 Joint costs allocated to mulch = 20000/(8000+4000)*8000= 13333.33 or 13333(rounded off)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.