Question

The Berkel Corporation manufactures​ Widgets, Gizmos, and Turnbols from a joint process. June production is 5 comma 000 ​widgets; 8 comma 750 ​gizmos; and 10 comma 250 turnbols. Respective per unit selling prices at splitminusoff are $ 85​, $ 55​, and $ 25. Joint costs up to the splitminusoff point are $ 190 comma 000. If joint costs are allocated based upon the sales value at splitminus​off, what amount of joint costs will be allocated to the​ widgets? (Do not round any intermediary​ calculations.)

Answer 1

$41,881

Step-by-step explanation:

Determine the sales value of Turnbols at split-off as follows:

Sales Value of = Number of units x Selling Price Tumbols at split-off ]

= 10,250 x $25 = $256,250

Determine the total sales value of all products at the split-off.

Total Sales Value=(5,000 x $85) + (8,750x $55) + (10,250x $25)

= $425,000 + $481,250 +$256,250 = $1,162,500

Amount of joint costs to be allocated to turnbols:

Joint costs to Turnbols=

Sales Value of Turnbols at splitoff/ Total Sales Value of all products x Joint Costs

Joint costs to Turnbols =$256,250/1,162,500 x $190,000

= $41,881

Therefore the amount of joint costs that will be allocated to the​ widgets is $41,881