Pagilla company manufactures four products-andol incol

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Sales-Value-at-Split-off Method

Pagilla Company manufactures four products-andol, incol, ordol,and exsol-from a joint production process. The joint costs for onebatch are as follows:

Direct materials $56,300
Direct labor 28,000
Overhead 15,700

At the split-off point, a batch yields 1,000 andol, 1,500 incol,2,500 ordol, and 3,000 exsol. All products are sold at thesplit-off point: Andol sells for $20 per unit; incol sells for $75per unit; ordol sells for $64 per unit, and exsol sells for $22.50per unit.


Required:

Allocate the joint costs using the sales-value-at-split-offmethod.

  • Andol
  • Incol
  • Ordol
  • Exsol

Reference no: EM13481665

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