Campbell Chemical Company makes three products, B7, K6, and X9,which are joint products from the same materials. In a standardbatch of 339,500 pounds of raw materials, the company generates75,300 pounds of B7, 162,100 pounds of K6, and 102,100 pounds ofX9. A standard batch costs $2,037,000 to produce. The sales pricesper pound are $5, $15, and $20 for B7, K6, and X9,respectively.
Required
Allocate the joint product cost among the three final productsusing weight as the allocation base.
Allocate the joint product cost among the three final productsusing market value as the allocation base
FILL IN CHARTS
|
| | Product | Allocation Rate | x | Weight of Base | = | Allocated Cost | | B7 | | x | | = | $ | | K6 | | x | | = | | | X9 | | x | | = | | | Total allocated cost | | | | $ |
|
|
| | Product | Allocation Rate | x | Weight of Base | = | Allocated Cost | | B7 | | x | | = | $ | | K6 | | x | | = | | | X9 | | x | | = | | | Total allocated cost | | | | | $ |
|
