Reference no: EM131565206

Question - Ron Chemicals produces four products from a joint process costing $450,000 per month. After leaving the joint process, the products must be further refined before they are salable. You have been provided with the following information:

Product      Volume      Further Processing Costs   Selling Price per Unit

A-1              25,000                    $350,000                          $65

B-3              15,000                      400,000                            82

C-2              20,000                      100,000                            35

Q-9              60,000                      250,000                            20

Required: Allocate the joint costs using the physical unit's method.       

1.  Physical Units Method

2.  Net Realizable Value Method