Reference no: EM132946860

Question - Garrison Co. produces three products - X, Y, and Z - from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $160,000. Sales values and costs needed to evaluate Garrison's production policy follow.

Units Sales Value at If Processed Further Product Produced Split Off Sales Value Additional Costs

x 18,000 $41,000 $85,000 $2,200

y 10,000  18,000  43,000  5,000

z 4,000  20,000  34,000  4,500

Required - Find the amount of joint costs allocated to product X using the physical measure method?