Cranbrook Chemical Ltd. manufactures two industrial compounds: Jarlon and Kharton. In the month of May, 15,000 litres of direct material costing $160,000 were processed at a cost of $400,000. The joint process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound known as Kharton. Jarlon sells for $38 and Kharton sells for $58. Both products may be processed further. Jarlon may be processed into Jaxton at an incremental cost of $8 per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $32 per jar of the final product. The number of jars of the final product are 12,000 of Jaxton and 3,000 of Kraxton. Jaxton sells for $48 per jar and Kraxton sells for $102 per jar. Using the sales value at split - off method, what would be the joint costs allocated to Jarlon? a. $289,520 b. $115,808 c. $405,328 d. $110,480 e. $154,672
Cranbrook Chemical Ltd. manufactures two industrial compounds: Jarlon and Kharton. In the month of May, 15,000 litres of direct material costing $160,000 were processed at a cost of $400,000. The joint process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound known as Kharton. Jarlon sells for $38 and Kharton sells for $58. Both products may be processed further. Jarlon may be processed into Jaxton at an incremental cost of $8 per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $32 per jar of the final product. The number of jars of the final product are 12,000 of Jaxton and 3,000 of Kraxton. Jaxton sells for $48 per jar and Kraxton sells for $102 per jar. Using the sales value at split - off method, what would be the joint costs allocated to Jarlon? a. $289,520 b. $115,808 c. $405,328 d. $110,480 e. $154,672
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A1
Transcribed Image Text:Cranbrook Chemical Ltd. manufactures two industrial compounds: Jarlon and Kharton. In the month of
May, 15,000 litres of direct material costing $160,000 were processed at a cost of $400,000. The joint
process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound
known as Kharton. Jarlon sells for $38 and Kharton sells for $58. Both products may be processed further.
Jarlon may be processed into Jaxton at an incremental cost of $8 per jar of the final product while Kharton
may be processed into Kraxton at an additional cost of $32 per jar of the final product. The number of jars of
the final product are 12,000 of Jaxton and 3,000 of Kraxton. Jaxton sells for $48 per jar and Kraxton sells for
$102 per jar.
Using the sales value at split - off method, what would be the joint costs allocated to Jarlon?
a. $289,520
b. $115,808
c. $405,328
d. $110,480
e. $154,672
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