Joint Cost Allocation-Physical Units Method Board-It, Inc., produces the following types of 2 * 4 * 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of $710 per batch. Using the physical units method, allocate the joint production cost to each product. Round your answers to two decimal places.

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Business

Stokes

6 September, 12:56

Joint Cost Allocation-Physical Units Method Board-It, Inc., produces the following types of 2 * 4 * 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of $710 per batch. Using the physical units method, allocate the joint production cost to each product. Round your answers to two decimal places.

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Ariana Harding · Answer 1

Products Physical Units Weight Allocation of Joint Cost

washed 45 45/100 0.45 x 710 = 319.5

stained 35 35/100 0.35 x 710 = 248.5

pressure treated 20 20/100 0.20 x 710 = 142

Explanation:

Joint Cost Allocation-Physical Units Method Board-It, Inc., produces the following types of 2 * 4 * 10 wood boards: washed, stained, and pressure treated.

These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards.

The joint production process costs a total of $710 per batch.

Using the physical units method, allocate the joint production cost to each product. Round your answers to two decimal places.

Products Physical Units Weight Allocation of Joint Cost

washed 45 45/100 0.45 x 710 = 319.5

stained 35 35/100 0.35 x 710 = 248.5

pressure treated 20 20/100 0.20 x 710 = 142