Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The...
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Accounting
Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows:
Product
Units Produced
Sales Value at Split-Off
If Processed Further
Additional Costs
Sales Values
Chem-1
288,000
$ 220,000
$ 32,700
$ 260,000
Chem-2
176,000
264,000
29,400
290,000
Chem-3
192,000
149,600
24,900
180,000
Chem-4
144,000
246,400
26,300
270,000
800,000
$ 880,000
$ 113,300
$ 1,000,000
Required:
Barrett Chemicals uses the physical quantities method to allocate joint costs. What joint costs would be allocated to each product in May?
