Problem
Chemical, Inc. produces three products: D, E, and F. During October, the joint costs of processing were $300,000. Production and sales value information for the month is as follows:
|
Product
|
Units Produced
|
Sales Value at Splitoff Point
|
|
D
|
8,000 liters
|
$50,000
|
|
E
|
8,000 liters
|
60,000
|
|
F
|
4,000 liters
|
25,000
|
Determine the amount of joint cost allocated to each product if the physical-measure method is used.