Upjohn Company manufactures four products from a joint process. Joint costs for the year amounted to $350,000. The following data are also available:

-Assuming the physical-units method of allocating joint costs, the amount of joint costs allocated to product Z would be
A) $101,500.
B) $89,600.
C) $161,111.
D) $82,858.

Question

Upjohn Company manufactures four products from a joint process. Joint costs for the year amounted to $350,000. The following data are also available:
 
-Assuming the physical-units method of allocating joint costs, the amount of joint costs allocated to product Z would be
A) $101,500. 
B) $89,600. 
C) $161,111. 
D) $82,858.

Quizplus · Accepted Answer

The physical-units method allocates joint costs based on the physical units of each product. In this case, product Z has 10,000 units, while product Y has 5,000 units. Therefore, product Z would be allocated 2/3 of the joint costs, or $101,500.

Upjohn Company Manufactures Four Products from a Joint Process