Question 7.2 Chemical X, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During June the joint costs of processing were $280,000. Production and sales value information for the month were as follows: Product Units Produced Sales Value at Splitoff Point Turpentine 3,000 litres $30,000 Paint thinner 3,000 litres 25,000 Spot remover 1,500 litres 12,500 Required: Determine the amount of joint cost allocated to each product if the physical measure method is used.
Question 7.2 Chemical X, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During June the joint costs of processing were $280,000. Production and sales value information for the month were as follows: Product Units Produced Sales Value at Splitoff Point Turpentine 3,000 litres $30,000 Paint thinner 3,000 litres 25,000 Spot remover 1,500 litres 12,500 Required: Determine the amount of joint cost allocated to each product if the physical measure method is used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 7.2
Chemical X, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During June the joint costs of processing were $280,000. Production and sales value information for the month were as follows:
Product |
Units Produced |
Sales Value at Splitoff Point |
Turpentine |
3,000 litres |
$30,000 |
Paint thinner |
3,000 litres |
25,000 |
Spot remover |
1,500 litres |
12,500 |
Required:
- Determine the amount of joint cost allocated to each product if the physical measure method is used.
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