Answer:
Allocated cost:
B7= 0.23*600,000= 138,000
K6= 0.50*600,000= 300,000
X9= 0.27*600,000= 162,000
Explanation:
Giving the following information:
Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce.
weighted average:
B7= 35,000/150,000= 0.23
K6= 75,000/150,000= 0.5
X9= 40,000/150,000= 0.27
Allocated cost:
B7= 0.23*600,000= 138,000
K6= 0.50*600,000= 300,000
X9= 0.27*600,000= 162,000
