FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $9,000.

 



Pounds

Sales price
per pound at
split-off
Disposal
cost per
pound at
split-off

Further
processing
per pound

Final sale
price per
pound
Alpha
1,800
$7.00
$4.50
$1.50
$ 8.00
Omega
2,600
 10.00
 6.00
 3.50
 12.25
           

If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.


Using a physical measure method, what amount of joint processing cost is allocated to Omega (round to the nearest dollar)?

Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)?

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