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.