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Ron Chemicals produces four products from a joint process costing $150,000 per month. After leaving the joint process, the products must be further refined before they are salable. You have been provided with the following information: Product   Volume   Further Processing Costs   Selling Price per Unit   A-1 15,000 $350,000 $80 B-3 25,000 $400,000 $40 C-2 10,000 $100,000 422 Q-9 50,000 $250,000 $10 Required: Allocate the joint costs using the physical units method? Allocate the joint costs using the net realizable value method

Ron Chemicals produces four products from a joint process costing $150,000 per month. After leaving the joint process, the products must be further refined before they are salable. You have been provided with the following information: Product   Volume   Further Processing Costs   Selling Price per Unit   A-1 15,000 $350,000 $80 B-3 25,000 $400,000 $40 C-2 10,000 $100,000 422 Q-9 50,000 $250,000 $10 Required: Allocate the joint costs using the physical units method? Allocate the joint costs using the net realizable value method

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ron Chemicals produces four products from a joint process costing $150,000 per month. After
leaving the joint process, the products must be further refined before they are salable. You
have been provided with the following information:

Product

 

Volume

 

Further Processing Costs

 

Selling Price per Unit

 

A-1

15,000

$350,000

$80

B-3

25,000

$400,000

$40

C-2

10,000

$100,000

422

Q-9

50,000

$250,000

$10

Required:

  1. Allocate the joint costs using the physical units method?
  2. Allocate the joint costs using the net realizable value method

 

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