Ask Question
27 February, 22:42

Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce. The sales prices per pound are $6, $10, and $16 for B7, K6, and X9, respectively. Required: a. Allocate the joint product cost among the three final products using weight as the allocation base.

+5
Answers (1)
  1. 28 February, 02:04
    0
    Allocated cost:

    B7 = 0.23*600,000 = 138,000

    K6 = 0.50*600,000 = 300,000

    X9 = 0.27*600,000 = 162,000

    Explanation:

    Giving the following information:

    Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce.

    weighted average:

    B7 = 35,000/150,000 = 0.23

    K6 = 75,000/150,000 = 0.5

    X9 = 40,000/150,000 = 0.27

    Allocated cost:

    B7 = 0.23*600,000 = 138,000

    K6 = 0.50*600,000 = 300,000

    X9 = 0.27*600,000 = 162,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers