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Alomar Company - Sales-Value-at-Split-off Method - 6 Nov, 2013

Sales-Value-at-Split-off  Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

 DIRECT MATERIALS $67,900

DIRECT LABOR 34,000

OVERHEAD 25,500

 

At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit.

 

Required:

 

Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.



Category : Management Accounting

Search Keywords :
Alomar , Sales , Value , Split-off , Method , Joint , Cost , Allocation 


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Answer  - 6 Nov, 2013
Please see the excel attachment....


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