BC Company

Joint Costs 25,000

Units manufactures 10,000

Product A B C
Sales Value @ Split-off 12 10 15
Separable cost 9 4 6
Sales value at completion 21 17 19

Incremental revenues 90,000 70,000 40,000

Separable cost (90,000) (40,000) (60,000)
Incremental Sales 0 30,000 (20,000)

Brite Surface Company

Joint Costs 9,000

Product C D E G
Units manufactures 750 1,000 1,400 2,000 5,150
Sales Value @ Split-off 10 8 11 15
Disposal cost 6.50 4.00 7.00 9.50
Further processing 2.00 2.50 4.00 4.50
Sales value at completion 13.50 10.00 15.50 19.50
Disposal after further processing 2.50 1.00 3.50 6.00

Physical measurement C D E G
Units manufactures 750 1,000 1,400 2,000 5,150
Weighting 0.15 0.19 0.27 0.39
Joint Cost Allocated 1,311 1,748 2,447 3,495

Sales value @ splitoff C D E G

7,500 8,000 15,400 30,000 60,900
0.12 0.13 0.25 0.49
Joint Cost Allocated 1,108 1,182 2,276 4,433

Net realizable value @ splitoff C D E G

2,625 4,000 5,600 11,000 23,225
0.11 0.17 0.24 0.47
Joint Cost Allocated 1,017 1,550 2,170 4,263

K Company
Joint Costs 252,000

Product X Y Z
Units manufactures 20,000 20,000 10,000
Sales Value @ Split-off 300,000 150,000 10,000

Sales value @ splitoff 300,000 150,000 450,000

0.67 0.33
Joint Cost Allocated 168,000 84,000

M&M Company
Joint Costs 72,240

Product CM SM
Direct Materials (10% Shrinkage) Lit. 65,000
Production: 26,100 32,400 58,500
Liters Sale 3.50 2.50

91,350 81,000 172,350

0.53 0.47
Joint Cost Allocated 38,289 33,951
Net Sales 53,061 47,049
Gross Margin 58.1% 58.1%

Incremental revenues 259,650 171,900

Separable cost (58,500) (70,250)
Incremental Sales 201,150 101,650

Net realizable value @ splitoff 292,500 182,650

Tim Company
Joint Costs 200,000

Product A B
Units manufactured 10,000 15,000
Sales Value @ Split-off 700,000 300,000 1,000,000
0.70 0.30
Joint Cost Allocated 140,000 60,000

SunGlo Company
Joint Costs 4,100
Advertising cost 60,000

Physical measurement
Product R S T
Units manufactured 250 400 750 1,400
0.18 0.29 0.54
Joint Cost Allocated 732 1,171 2,196

Floor space 5 4 9 18
0.28 0.22 0.50
Advertising cost allocated 16,667 13,333 30,000

BZ Chemicals
Joint Costs 300,000

Product X15 Z24

Units manufactured 10,000 40,000 50,000
40 20

Physical measurement (After the splitoff point)

0.20 0.80
Joint Cost Allocated 60,000 240,000

Sales Value @ Split-off 400,000 800,000 1,200,000

0.33 0.67
Joint Cost Allocated 100,000 200,000

WALANG COMPANY
Joint Costs 252,000
Product A B
108,000 72,000 180,000
2.40 3.90

Physical measurement 0.60 0.40

Joint Cost Allocated 151,200 100,800

Myfarm Corporation
1,350,657 959,343

LS Company
Product CREAM SKIM

420,000

L S
180,000 120,000
2.40 3.90 6.30
 0 1
160,000 260,000

432,000 468,000 900,000

0.48 0.52
201,600 218,400

975,000