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Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.     DBB-1 DBB-2 DBB-3 Total Units Sold   11,000     17,000     24,000     52,000   Price (after addt’l processing) $ 10   $ 25   $ 30         Separable Processing cost $ 282,000   $ 114,000   $ 169,000   $ 565,000   Units Produced   17,600     31,000     39,400     88,000   Total Joint Cost                   $ 4,800,000   Sales Price at Split-off $ 20   $ 30   $ 50             The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):   Multiple Choice   $27,125.   $960,000.   $2,148,960.   $24,600.   $1,691,040.

Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.     DBB-1 DBB-2 DBB-3 Total Units Sold   11,000     17,000     24,000     52,000   Price (after addt’l processing) $ 10   $ 25   $ 30         Separable Processing cost $ 282,000   $ 114,000   $ 169,000   $ 565,000   Units Produced   17,600     31,000     39,400     88,000   Total Joint Cost                   $ 4,800,000   Sales Price at Split-off $ 20   $ 30   $ 50             The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):   Multiple Choice   $27,125.   $960,000.   $2,148,960.   $24,600.   $1,691,040.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...
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Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.

 

  DBB-1 DBB-2 DBB-3 Total
Units Sold   11,000     17,000     24,000     52,000  
Price (after addt’l processing) $ 10   $ 25   $ 30        
Separable Processing cost $ 282,000   $ 114,000   $ 169,000   $ 565,000  
Units Produced   17,600     31,000     39,400     88,000  
Total Joint Cost                   $ 4,800,000  
Sales Price at Split-off $ 20   $ 30   $ 50        
 

 

The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

 

Multiple Choice
  •  
    $27,125.
  •  
    $960,000.
  •  
    $2,148,960.
  •  
    $24,600.
  •  
    $1,691,040.
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