Hsu Company manufactures two products (A and B) from a joint process that cost $330,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows. Product Pounds Produced Per-Pound Sales Price If Processed Further Sales Value Separable Cost A 40,000 $ 12 $ 410,000 $ 120,000 B 60,000 8 320,000 70,000 If the joint costs are allocated based on the physical-units method, what would be the amount of joint cost assigned to product A?
Hsu Company manufactures two products (A and B) from a joint process that cost $330,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows. Product Pounds Produced Per-Pound Sales Price If Processed Further Sales Value Separable Cost A 40,000 $ 12 $ 410,000 $ 120,000 B 60,000 8 320,000 70,000 If the joint costs are allocated based on the physical-units method, what would be the amount of joint cost assigned to product A?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hsu Company manufactures two products (A and B) from a joint
|
Product |
Pounds Produced |
Per-Pound Sales Price |
If Processed Further |
|
|
Sales Value |
Separable Cost |
|||
|
A |
40,000 |
$ 12 |
$ 410,000 |
$ 120,000 |
|
B |
60,000 |
8 |
320,000 |
70,000 |
If the joint costs are allocated based on the physical-units method, what would be the amount of joint cost assigned to product A?
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