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 Chem-1 Chem-2 Chem-3 Chem-4 Units Produced 300,000 188,000 204,000 156,000 848,000 If Processed Further Sales Value at Additional Split-Off Costs $ 232,000 $33,900 276,000 161,600 258,400 $ 928,000 $ 118,100 30,600 26,100 27,500 Sales Values $ 272,000 302,000 192,000 282,000 $ 1,048,000 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 Chem-1 Chem-2 Chem-3 Chem-4 Units Produced 300,000 188,000 204,000 156,000 848,000 If Processed Further Sales Value at Additional Split-Off Costs $ 232,000 $33,900 276,000 161,600 258,400 $ 928,000 $ 118,100 30,600 26,100 27,500 Sales Values $ 272,000 302,000 192,000 282,000 $ 1,048,000 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
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Transcribed Image Text: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
Chem-11
Chem-2
Chem-3
Chem-4
Units
Produced
300,000
188,000
204,000
156,000
848,000
Product
Chem-1
Chem-2
Chem-3
Chem-4
NRV at Split-
Off
If Processed Further
Sales Value at Additional
Split-Off Costs
$ 232,000
276,000
161,600
258,400
$ 928,000 $ 118,100
Joint Costs
Allocated i
$ 33,900
30,600
26,100
27,500
Required:
Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in
May?
Note: Round percentages to 2 decimals. Round your final answers to the nearest whole dollar amounts.
Sales Values
$ 272,000
302,000
192,000
282,000
$1,048,000
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