Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows: Product Units Produced Sales Value at Split-Off If Processed Further Additional Costs Sales Values Chem-1 295,000 $ 227,000 $ 33,400 $ 267,000 Chem-2 183,000 271,000 30,100 297,000 Chem-3 199,000 156,600 25,600 187,000 Chem-4 151,000 253,400 27,000 277,000 828,000 $ 908,000 $ 116,100 $ 1,028,000 Required: Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May?
Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows: Product Units Produced Sales Value at Split-Off If Processed Further Additional Costs Sales Values Chem-1 295,000 $ 227,000 $ 33,400 $ 267,000 Chem-2 183,000 271,000 30,100 297,000 Chem-3 199,000 156,600 25,600 187,000 Chem-4 151,000 253,400 27,000 277,000 828,000 $ 908,000 $ 116,100 $ 1,028,000 Required: Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows:
| Product | Units Produced | Sales Value at Split-Off | If Processed Further | |
|---|---|---|---|---|
| Additional Costs | Sales Values | |||
| Chem-1 | 295,000 | $ 227,000 | $ 33,400 | $ 267,000 |
| Chem-2 | 183,000 | 271,000 | 30,100 | 297,000 |
| Chem-3 | 199,000 | 156,600 | 25,600 | 187,000 |
| Chem-4 | 151,000 | 253,400 | 27,000 | 277,000 |
| 828,000 | $ 908,000 | $ 116,100 | $ 1,028,000 |
Required:
Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May?
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