Question

Blaine, Inc., produces three products, Argon, Xon, and Zeon, from a joint production process. Data on the process are as follows:
Product Agon Xon Zeon Total
Allocated joint cost $45 $450
Sales value at split-off $90 $900
Additional processing costs $60 $150
Sales value if processed $150 $300 $1200
Contribution from processing further $15 $0 $360
Units produced 750 1250 3,000 5,000


Required:
Determine the value for each misse

Answer 1

Answer:

Agon

Allocated joint cost $45

Sales value split off $90

additional processing cost $60

Sales value if processed further $150

Contribution from processing further $15

Xon

Allocated joint cost $75

Sales value split off $150

additional processing cost $150

Sales value if processed further $300

Contribution from processing further $0

Zeon

Allocated joint cost $330

Sales value split off $660

additional processing cost $180

Sales value if processed further $1200

Contribution from processing further $360

Explanation:

Sales split off point Xon $300 - $150 = $150

Sales split off point Zeon $900 - $90 - $150 = $660

Joint cost of Xon = 450 / 900 * 150 = 75

Joint cost of Zeon = 450 / 900 * 660 = 330