TB MC Qu. 7-66 (Algo) Joint costs allocated to product DBB-1 using the physical measure method: Double Company Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. 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. Key information about Double's production, sales, and costs follows. Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off Multiple Choice C $783,333. $812,973. The amount of joint costs allocated to product DBB-1 using the physical measure method is: $1,727,568. DBB-1 $1,253,333. 19, 200 $ 65 $ 142,000 19, 200 $25 DBB-2 28,800 $50 $ 76,000 28,800 $ 35 DBB-3 40,800 $ 75 $ 98,000 40,800 $ 55 Total 88,800 $ 316,000 88,800 $ 3,760,000

TB MC Qu. 7-66 (Algo) Joint costs allocated to product DBB-1 using the physical measure method: Double Company Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. 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. Key information about Double's production, sales, and costs follows. Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off Multiple Choice C $783,333. $812,973. The amount of joint costs allocated to product DBB-1 using the physical measure method is: $1,727,568. DBB-1 $1,253,333. 19, 200 $ 65 $ 142,000 19, 200 $25 DBB-2 28,800 $50 $ 76,000 28,800 $ 35 DBB-3 40,800 $ 75 $ 98,000 40,800 $ 55 Total 88,800 $ 316,000 88,800 $ 3,760,000

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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