Answered: Joint Cost Allocation—Physical Units…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 6BE: Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles...

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Joint Cost Allocation—Physical Units Method

Blake’s Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process that ultimately produces 28 12-gauge shotguns and 12 20-gauge shotguns and costs a total of $4,200 per batch. After the split-off point, each type of shotgun goes through an additional crafting process before it is sold. The additional production process of the 12-gauge shotgun costs $28 per gun, after which it is sold for $180 per gun. The additional production process of the 20-gauge shotgun costs $20 per gun, after which it is sold for $152 per gun.

Determine the amount of joint production costs allocated to each type of shotgun using the physical units method.

Joint Product	Allocation
12-gauge shotgun	$
20-gauge shotgun
Totals	$

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