Sales-Value-at-Split-off Method:
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
DIRECT MATERIALS $67,900
DIRECT LABOR 34,000
OVERHEAD 25,500
At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
Allocated Joint Cost
Barlon $
Selene
Plicene
Corsol
Total $
(Note: The total of the allocated cost does not equal $127,400 due to rounding error.)