Jackson Company manufactures three products from a joint process. Joint costs for the year amounted to $300,000. The following data was available: Product Units Produced Sales Value at Splitminusoff X 5,000 $70,000 Y 3,000 $30,000 Z 2,000 $100,000 Assume the physicalminusunits method of allocating joint costs is used. What amount of joint costs is allocated to Product Y?

Question

Business

Frankie Maxwell

2 January, 09:45

Jackson Company manufactures three products from a joint process. Joint costs for the year amounted to $300,000. The following data was available: Product Units Produced Sales Value at Splitminusoff X 5,000 $70,000 Y 3,000 $30,000 Z 2,000 $100,000 Assume the physicalminusunits method of allocating joint costs is used. What amount of joint costs is allocated to Product Y?

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Answers (1)

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Morgan Pacheco · Answer 1

Joint costs allocated to Product Y = $60,000

Explanation:

Given:

Particular Product Units Produced Sales

X 5,000 $70,000

Y 3,000 $30,000

Z 2,000 $100,000

Total 10,000

Joint costs allocated to Product Y = (Total Joint costs * Y's total unit) / Total units produced

Joint costs allocated to Product Y = ($300,000 * 3,000) / 10,000

Joint costs allocated to Product Y = $90,000