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Calculate the amount of joint cost allocated to zyratec

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Reference no: EM132546664

ABC Ltd manufactures two products, Nupod and Zyratec, out of a joint process. The joint costs incurred are $500,000 for a standard production run that generates 100,000 litres of Nupod and 75,000 litres of Zyratec. Nupod sells for $7.00 per litre while Zyratec sells for $10.50 per litre.

Required

Question A. If there are no additional processing costs incurred after the split-off point, calculate, for each production run, the amount of joint cost allocated to Nupod on a physical units basis.

Question B. If there are no additional processing costs incurred after the split-off point, calculate, for each production run, the amount of joint cost allocated to Zyratec on a relative sales value basis.

Reference no: EM132546664

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