Question:
Physical Quantities Method
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $126,000. Additional information follows:
|
|
|
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If Processed Further
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|
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Units
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Sales Value
|
Sales
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Additional
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|
Product
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Produced
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at Split-Off
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Values
|
Costs
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KA
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56,000
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$160,000
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$220,000
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$36,000
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|
KB
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40,000
|
140,000
|
180,000
|
28,000
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|
KC
|
16,000
|
100,000
|
160,000
|
20,000
|
Required
a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $36,000 if processed further)?
b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $28,000 if processed further)?