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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 13E: Lean accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing...

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