Joint manufacturing costs: $900,000
quantity produced price...
Business, 18.12.2019 01:31 saharaapollonio
Joint manufacturing costs: $900,000
quantity produced price at split-off
grade (board feet) (per 1,000 board ft.)
firsts and seconds 1,500,000 $300
no. 1 common 3,000,000 225
no. 2 common 1,875,000 140
no. 3 common 1,125,000 100
total 7,500,000
allocate the joint manufacturing costs to each grade, and calculate the cost per board foot for each grade:
(a) using the physical units method of allocation.
(b) using the sales-value-at-split-off method. which method should the mill use? explain. what is the effect on the cost of each proposed job if the mill switches to the sales-value-at-split-off method? .
Answers: 2
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