Sales-Value-at-Split-off Method
Pagilla Company manufactures four products-andol, incol, ordol,and exsol-from a joint production process. The joint costs for onebatch are as follows:
| Direct materials |
$56,300 |
| Direct labor |
28,000 |
| Overhead |
15,700 |
At the split-off point, a batch yields 1,000 andol, 1,500 incol,2,500 ordol, and 3,000 exsol. All products are sold at thesplit-off point: Andol sells for $20 per unit; incol sells for $75per unit; ordol sells for $64 per unit, and exsol sells for $22.50per unit.
Required:
Allocate the joint costs using the sales-value-at-split-offmethod.