v12. Marin Products produces three products – DBB-1, DBB-2, and DBB-3
Question
v12. Marin Products produces three products – DBB-1, DBB-2, and DBB-3 from a joint
process. Each
product may be sold at the split-off point or processed further. Additional
processing requires no special facilities, and production costs of further processing are
entirely variable and traceable to the products involved. Key information about Marin’s
production, sales, and costs follows.
DBB-1
DBB-2
DBB-3
Total
Units sold
16,000
24,000
36,000
76,000
Price (after addt’l
processing)
$65
$50
$75
Separable Processing
cost
$110,000
$44,000
$66,000
$220,000
Units produced
16,000
24,000
36,000
76,000
Total Joint Cost
$3,600,000
Sales Price at Split-off
$25
$35
$55
The amount of joint costs allocated to product DBB-2 using the sales value at split-off
method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%,
and round all dollar amounts to the nearest whole dollar):
$939,240
$216,870
$447,120
$757,800
$2,213,640