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McGraw Company manufactures three products from a joint production process: alphas, betas, and gammas. The joint costs for one batch are as follows: Direct materials                        $68,800 Direct labor                               28,000 Overhead                                 28,200 At the split-off point, a batch yields 12,500 alphas, 17,500 betas, and 20,000 gammas. All products are sold at the split-off point: alpha sells for $20 per unit; beta sells for $50 per unit, and gamma sells for $18 per unit.   Required 1.    Allocate the joint costs using the physical units method. 2.    Allocate the joint costs using the sales-value-at-split-off method.

McGraw Company manufactures three products from a joint production process: alphas, betas, and gammas. The joint costs for one batch are as follows: Direct materials                        $68,800 Direct labor                               28,000 Overhead                                 28,200 At the split-off point, a batch yields 12,500 alphas, 17,500 betas, and 20,000 gammas. All products are sold at the split-off point: alpha sells for $20 per unit; beta sells for $50 per unit, and gamma sells for $18 per unit.   Required 1.    Allocate the joint costs using the physical units method. 2.    Allocate the joint costs using the sales-value-at-split-off method.

Financial And Managerial Accounting
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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McGraw Company manufactures three products from a joint production process: alphas, betas, and gammas. The joint costs for one batch are as follows:

Direct materials                        $68,800

Direct labor                               28,000

Overhead                                 28,200

At the split-off point, a batch yields 12,500 alphas, 17,500 betas, and 20,000 gammas. All products are sold at the split-off point: alpha sells for $20 per unit; beta sells for $50 per unit, and gamma sells for $18 per unit.

 

Required

1.    Allocate the joint costs using the physical units method.

2.    Allocate the joint costs using the sales-value-at-split-off method.


 

 

 

 

 

 

 

 

 

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