Question - Boissons Company produces four solvents from the same process: C1RT, D4GH, E7TY, and G98P. Joint product costs are $150,000. (Round all answers to the nearest dollar.)
|
Barrels
|
Sales price
per barrel
at split-off
|
Disposal cost per barrel at split-off
|
Further processing
costs
|
|
C1RT
|
500
|
$10.00
|
$6.50
|
$2.00
|
|
D4GH
|
1,000
|
8.00
|
4.00
|
2.50
|
|
E7TY
|
1,500
|
11.00
|
7.00
|
4.00
|
|
G98P
|
2,000
|
15.00
|
9.50
|
4.50
|
If Boissons sells the products after further processing, the following disposal costs will be incurred: C1RT, $2.50; D4GH, $1.00; E7TY, $3.50; G98P, $6.00.
Using a physical measurement method, how much joint cost are allocated to each of the four solvents? (C1RT, D4GH, E7TY & G98P)