physical units method alomar company manufactures four products from a joint product 649397

PHYSICAL UNITS METHOD Alomar Company manufactures four products from a joint production process: andol, incol, ordol, and exsol. The joint costs for one batch are as follows:

At the split off point, a batch yields 1,000 andol, 1,500 incol, 2,500 ordol, and 3,000 exsol. All products are sold at the split off point: andol sells for $20 per unit; incol sells for $75 per unit; ordol sells for $64 per unit, and exsol sells for $22.50 per unit.

Required:

1. Allocate the joint costs using the physical units method.

2. Suppose that the products are weighted as follows:

Allocate the joint costs using the weighted average method.