Determine the amount of joint cost allocated to each product

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Problem

Chemical, Inc. produces three products: D, E, and F. During October, the joint costs of processing were $300,000. Production and sales value information for the month is as follows:

Product

Units Produced

Sales Value at Splitoff Point

D

8,000 liters

$50,000

E

8,000 liters

60,000

F

4,000 liters

25,000

Determine the amount of joint cost allocated to each product if the physical-measure method is used.

Reference no: EM131809203

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