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Ksju [112]
2 years ago
5

The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 5,000 widgets; 8,750

gizmos; and 10,000 turnbols. Respective per unit selling prices at splitoff are $75, $50, and $25. Joint costs up to the splitoff point are $187,500. If joint costs are allocated based upon the sales value at splitoff, what amount of joint costs will be allocated to the widgets
Business
1 answer:
igor_vitrenko [27]2 years ago
8 0

Answer:

Allocated join cost = $66,176.47  

Explanation:

<em>The joint cost is allocated using sales. This is done by using the proportion of sales of the total which is attributed to the sales value of widget</em>

Total sales value of the three products=

(75  × 5,000) + ($50×  8,750) + ( $25×  10,000)= 1,062,500

Joint cost = $187,500.

Joint costs allocated to Widget

=  (75  × 5,000)/1,062,500  ×  $187,500. =  66,176.47  

Allocated join cost =$66,176.47  

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