Question 7.2 Chemical X, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During June the joint costs of processing were $280,000. Production and sales value information for the month were as follows:ProductUnits ProducedSales Value at Splitoff PointTurpentine3,000 litres$30,000 Paint thinner3,000 litres25,000 Spot remover1,500 litres12,500 Required:Determine the amount of joint cost allocated to each product if the physical measure method is used.

Introduction: A cost that is shared by multiple products and for which it is impossible to separate…

Answered: Question 7.2 Chemical X, Inc.…

Managerial Accounting: The Cornerstone of Business Decision-Making

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ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

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Problem 39E: (Appendix 11A) Manufacturing Cycle Efficiency Kurena Company provided the following information on...

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Question 7.2

Chemical X, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During June the joint costs of processing were $280,000. Production and sales value information for the month were as follows:

Product	Units Produced	Sales Value at Splitoff Point
Turpentine	3,000 litres	$30,000
Paint thinner	3,000 litres	25,000
Spot remover	1,500 litres	12,500

Required:

Determine the amount of joint cost allocated to each product if the physical measure method is used.

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