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 $594,000. Additional information follows: Product Units Produced Sales Value at Split-Off If Processed Further Additional Costs Sales Values Chem-1 264,000 $ 200,640 $ 29,040 $ 237,600 Chem-2 176,000 264,000 28,160 288,640 Chem-3 200,000 156,000 24,000 187,500 Chem-4 160,000 272,000 28,800 300,000 800,000 $ 892,640 $ 110,000 $ 1,013,740 Required: Barrett Chemicals uses the physical quantities 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 $594,000. Additional information follows: Product Units Produced Sales Value at Split-Off If Processed Further Additional Costs Sales Values Chem-1 264,000 $ 200,640 $ 29,040 $ 237,600 Chem-2 176,000 264,000 28,160 288,640 Chem-3 200,000 156,000 24,000 187,500 Chem-4 160,000 272,000 28,800 300,000 800,000 $ 892,640 $ 110,000 $ 1,013,740 Required: Barrett Chemicals uses the physical quantities 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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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 $594,000. Additional information follows:
| Product | Units Produced | Sales Value at Split-Off | If Processed Further | |
|---|---|---|---|---|
| Additional Costs | Sales Values | |||
| Chem-1 | 264,000 | $ 200,640 | $ 29,040 | $ 237,600 |
| Chem-2 | 176,000 | 264,000 | 28,160 | 288,640 |
| Chem-3 | 200,000 | 156,000 | 24,000 | 187,500 |
| Chem-4 | 160,000 | 272,000 | 28,800 | 300,000 |
| 800,000 | $ 892,640 | $ 110,000 | $ 1,013,740 |
Required:
Barrett Chemicals uses the physical quantities method to allocate joint costs. What joint costs would be allocated to each product in May?
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