Acct434 Advanced Cost Management: Week 4 Problem 2 - Zenon Chemical, Inc. processes pine rosin
Acct434 Advanced Cost Management Week 4
Problem 2 Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:
Product Units Produced Sales Value at Splitoff Point
Turpentine 6,000 liters 60,000
Paint thinner 6,000 liters 50,000
Spot remover 3,000 liters 25,000
Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used.