Lawn Products produces two products (X and Y) and a by-product (2) from a joint process using a raw material (Alpha) The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 21,000 pounds of Alpha at a total cost of $97,000. The output of the process consisted of 33,300 units of product X, 40.700 units of product Y, and 6,900 units of by-product Z. By-product Z can be sold for $9,800. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y? Product X Product Y Joint Costs

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha) The
company chooses to allocate the costs on the basis of the physical quantities method.
Last month, it processed 21,000 pounds of Alpha at a total cost of $97,000. The output of the process consisted of 33,300 units of
product X, 40,700 units of product Y, and 6,900 units of by-product Z. By-product Z can be sold for $9,800. This is considered to
be its net realizable value, which is deducted from the processing costs of the main products.
Required:
What amount of joint costs should be assigned to each of product X and product Y?
Joint Costs
Product X
Product Y
Transcribed Image Text:Lawn Products produces two products (X and Y) and a by-product (Z) from a joint process using a raw material (Alpha) The company chooses to allocate the costs on the basis of the physical quantities method. Last month, it processed 21,000 pounds of Alpha at a total cost of $97,000. The output of the process consisted of 33,300 units of product X, 40,700 units of product Y, and 6,900 units of by-product Z. By-product Z can be sold for $9,800. This is considered to be its net realizable value, which is deducted from the processing costs of the main products. Required: What amount of joint costs should be assigned to each of product X and product Y? Joint Costs Product X Product Y
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