Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:
|
Product
|
Units Produced
|
Sales Value at Splitoff Point
|
|
Turpentine
|
6,000 liters
|
$60,000
|
|
Paint thinner
|
6,000 liters
|
50,000
|
|
Spot remover
|
3,000 liters
|
25,000
|
Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used.