P2. Zenon Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month were as follows: Product Turpentine Paint thinner Spot remover Units Produced In liters 6,000 liters 6,000 liters 3,000 liters Sales Value at Split-off Point per liters $10 $8 $6 Additional Processing Costs per litter $4 $5 $3 Units Sold In litters 5,400 5,000 2,600 Final Selling Price $18 $12 $15 Required: a. Determine the amount of joint cost allocated to each product, unit cost, cost of goods inventory, and cost of ending inventory if the physical-measure method is used.
P2. Zenon Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month were as follows: Product Turpentine Paint thinner Spot remover Units Produced In liters 6,000 liters 6,000 liters 3,000 liters Sales Value at Split-off Point per liters $10 $8 $6 Additional Processing Costs per litter $4 $5 $3 Units Sold In litters 5,400 5,000 2,600 Final Selling Price $18 $12 $15 Required: a. Determine the amount of joint cost allocated to each product, unit cost, cost of goods inventory, and cost of ending inventory if the physical-measure method is used.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:P2. Zenon Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During
May, the joint costs of processing were $240,000. Production and sales value information for the month were as follows:
Product
Turpentine
Paint thinner
Spot remover
Units
Produced
In liters
6,000 liters
6,000 liters
3,000 liters
Sales Value at
Split-off Point
per liters
$10
$8
$6
Additional
Processing
Costs per litter
$4
$5
$3
Units Sold
In litters
5,400
5,000
2,600
Final Selling
Price
$18
$12
$15
Required:
a. Determine the amount of joint cost allocated to each product, unit cost, cost of goods inventory, and cost of ending
inventory if the physical-measure method is used.
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