Cost Allocation: Departments, Joint Products, and By-Products
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Transcript of Cost Allocation: Departments, Joint Products, and By-Products
Cost Management and Strategy: An Overview
Cost Allocation: Departments, Joint Products, and By-ProductsChapter Seven
Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin7-#Identify the strategic role of cost allocation
Explain the ethical issues of cost allocation
Use three methods for allocating service department costs to production departments
Explain problems in implementing each of the three departmental cost allocation methodsLearning Objectives7-#7-#Learning Objectives (continued)Use the three methods for allocating joint product costs
Understand alternative methods to account for by-products associated with a joint production process
7-#7-#The Strategic Role of Cost Allocation Determine accurate departmental and product costs as a basis for evaluating the cost efficiency of departments and the profitability of different products
Motivate managers to exert a high level of effort to achieve the goals of top management
Provide the right incentive for managers to make decisions that are consistent with the goals of top management7-#7-#The Strategic Role of Cost Allocation (continued) Fairly determine the rewards earned by managers for their effort and skill and for the effectiveness of their decision-making
The most objective basis for cost allocation exists when a cause-and-effect relationship can be determined, such as the relationship between machine breakdowns and maintenance costs
Other alternatives exist in the absence of cause-and-effect relationships, such as ability-to-bear and benefit received7-#7-#Ethical Issues in Cost AllocationAn ethical issue arises when costs are allocated to products or services that are produced for both a competitive market and a public or governmental entity
The latter often purchases on a cost-plus basis creating an incentive to shift costs from the competitive products to cost-plus-based products and contracts
An equity or fair-share issue arises when a governmental unit reimburses the costs of a private institution or when it provides a service to the public for a feeno single measure of equity exists7-#7-#Ethical Issues in Cost Allocation (continued)A third ethical issue is the effect of the chosen allocation method on the costs of the products sold to or from foreign subsidiaries
By increasing the costs of products purchased in high-tax countries or in countries where the firm does not have favorable tax treatment, the firm can reduce its overall tax liability
International tax authorities watch the cost-allocation methods of multinational firms very closely for this reason 7-#7-#Overhead Allocations: Three General ApproachesThree general approaches for allocating overhead costs to products:
The volume-based approach allocates overhead from a single cost pool
The departmental approach allocates overhead to production departments, and then from production departments to products
The activity-based approach allocates overhead to production activities (activity cost pools), and then from production activities to products 7-#7-#The Departmental ApproachThe departmental approach classifies manufacturing departments into production and service departments
This approach involves three phases:
Trace all direct overhead costs and allocate common overhead costs to both the various production and service departmentsAllocate the service department costs to the production departmentsAllocate production department costs to products7-#7-#The Three Phases of Departmental Cost Allocation
7-#7-#The Three Phases of Departmental Cost AllocationBetter Diagram
7-#7-#Departmental Approach Example
Beary Company manufactures two products and has two production departments (P-1 and P-2) and two service departments (S-1 and S-2). Beary uses labor-hours (DLH) to allocate indirect labor costs and machine-hours (MH) to allocate indirect materials costs.Not Traceable7-#7-#Departmental Approach: Phase 1
7-#7-#Departmental Approach: Phase 2Phase 2, allocation of service department costs: whether, and to what extent, reciprocal cost flows are recognized?
Three methods are used to allocate service department costs: The direct method The step method The reciprocal method7-#7-#Reciprocal Relationships!
7-#7-#Service relationships in current problem(from p. 8)ToFromS1S2P1P2S1--40%30%30%S210%--30%60%7-#7-#Phase 2: Direct Method (p. 8)
7-#7-#Phase 3: Direct Method (p. 9)
7-#7-#Phase 2: Step Method
=$8250+$23407-#7-#Phase 3: Step Method
7-#7-#Phase 2: Reciprocal Method
7-#7-#Phase 2: Reciprocal Method (continued)
7-#7-#Phase 3: Reciprocal Method
7-#7-#Choosing the most accurate method is key
Wide variations can occur in the product allocation amounts
Determining an appropriate allocation base and a percentage amount for service provided by the service departments is often difficult
Often firms have difficulty distinguishing fixed and variable costs
Ideally, firms would use dual allocation, which separates variable and fixed costs and traces the variable costs directly to the departments that caused the costKey Implementation Issues7-#7-#Using budgeted vs. actual amounts?
Budgeted (predetermined) amounts can be more difficult to determine but are more motivating for the allocation of fixed costsUsing budgeted amounts makes the allocation of fixed costs more predictable and less dependent upon the usage of other departments
Allocated costs can exceed external purchase cost
Occasionally the cost a department is allocated exceeds the cost of purchasing that service from an outside supplier Key Implementation Issues (continued)7-#7-#Joint Product CostingSome manufacturing plants yield more than one product from a common resource input; this is called a joint production process
Joint products are products from a joint production process that have relatively substantial sales values
Products whose total sales values are minor in comparison to the sales value of the joint products are classified as by-products7-#7-#Joint Product Costing (continued)Joint products and by-products start their manufacturing life as part of the same raw material, so up until a certain point, no distinction can be made between the productsBy-products differ from joint products in that the sales value of the by-product is somewhat lower than that of the joint productsThe point in a joint production process at which individual products can be identified for the first time is called the split-off pointJoint costs include all manufacturing costs incurred prior to the split-off point7-#7-#Joint Product Costing (continued)Costs incurred after the split-off point are called additional processing costs or separable costs
Three methods are commonly used to allocate joint product costs
Relative physical units (measures) producedRelative sales values of the products Relative net realizable values (NRV) of the products7-#7-#Cost Allocation Based on Relative Physical UnitsThe physical units method uses a physical measure such as pounds, gallons, or yards or units or volume to allocate the joint costs to joint products
The greater the output (however measured), the greater the share of joint costs allocated to the product
This method is also called the average cost method when units of output are used in the costing procedure7-#7-#The Physical Units Method: ExampleAssume Johnson Seafood produces tuna filets and canned tuna for distribution to restaurants and supermarkets:
7-#7-#The Physical Units Method (continued)
7-#7-#The Physical Units Method: SummaryAdvantagesDisadvantages Easy to useIgnores the revenue-producing capability of individual productsThe criterion for the allocation of the joint costs is objectiveEach product can have its own unique physical measure7-#7-#Relative Sales Values at Split-off MethodThe sales value at split-off method allocates joint costs to joint products on the basis of their relative sales values at the split-off point
This method can only be used when joint products can be sold at the split-off point7-#7-#Sales Value at Split-off Point: Example
Using the same example, the sales value at split-off point method produces the following results:7-#7-#Sales Values at Split-off Point Method: SummaryAdvantagesDisadvantages Easy to calculate Market prices for some industries change constantly Costs are allocated according to the individual products revenue Sales price at split-off might not be available because additional processing is necessary for sale7-#7-#The Net Realizable Value (NRV) MethodThe NRV method can be used when joint products cannot be sold at split-off
The net realizable value (NRV) of a product is the products estimated sales value at the split-off point
NRV is determined by subtracting additional processing and selling costs beyond the split-off point from the estimated ultimate sales value of the product7-#7-#The Net Realizable Value Method: ExampleAssume Johnson Seafood also produces cat food from the raw, unprocessed tuna
7-#7-#The NRV Method: Example (continued)
7-#7-#By-Product CostingFour Methods: Two based on assets, two based on revenues:
Asset Recognition Methods:Net Realizable Value (NRV) MethodOther Income at Production Point Method
Revenue Methods:Other Income at Selling Point MethodManufacturing Cost Reduction at Selling Point Method
The main difference between these methods is the former grouping records by-product produced as inventory at NRV, while the latter grouping recognizes by-product revenue in the period sold7-#7-#Cost allocation is strategically important in determining accurate departmental and product costs, for evaluating the cost efficiency of departments, and for assessing the profitability of different productsEthical issues arise when costs are allocated to products or servicesWhat method is being used to allocate the costs?Is the market competitive or on a cost-plus basis?Is the allocation method equitable?
Chapter Summary7-#7-#Chapter Summary (continued)There are three methods of overhead allocation:The volume-based approach allocates overhead costs from a single cost pool, directly to products and services
The departmental approach allocates overhead to production departments, and then from production departments to products
The activity-based approach allocates overhead to production activities, and then from production activities to products7-#7-#Chapter Summary (continued)This chapter focused on the departmental approach, which has three phases:
Assign total overhead costs to production and service departments by tracing direct overhead costs to production and service departments and by allocating common (joint) overhead costs to service and production departments
Allocate service department costs to production departments (using either the direct, step, or reciprocal method)
Allocate overhead costs from production department costs to products, customers, jobs, etc. 7-#7-#Methods Used for Departmental Cost AllocationDirect Method (ignores reciprocal service between service departmentsStep Method (assigns reciprocal service costs in steps)Reciprocal Method (accounts for all reciprocal service between service departments)Chapter Summary (continued)7-#7-#Chapter Summary (continued) Joint production processes - two different types of output: Joint products By-products Two types of costs associated with a joint production process: Joint costs Separable processing costs Three methods commonly used to allocate joint costs: Relative physical units Relative sales values at the split-off point Relative NRVs (estimated sales values at the split-off)7-#7-#Chapter Summary (continued)There are four by-product costing alternatives:
Asset Recognition Methods (i.e., by-product benefits recognized in period of production):Net Realizable Value (NRV) MethodDisclosure of By-Product Benefits as Other Income
Revenue Methods (i.e., by-product benefits recognized in period of sale):Disclosure of By-Product Benefits as Other IncomeDisclosure of By-Product Benefits as a Reduction in Manufacturing Costs Associated with Joint Products7-#7-#Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000OVH cost to departments:Indirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,9255,850S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500$8,250Plus Phase 1 Allocation Amount24,75027,150$51,900Total for Production Departments30,42535,57566,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%P-1 (labor-hour basis)$15,212.50$15,212.50$30,425P-2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalStep 1--Allocation of S-1:Service percent40%30%30%Amount2,3401,7551,7555,850Step 2--Allocation of S-2:Service percent30%60%Alloc. % per direct method33.33%66.67%Amount10,590$3,530$7,0608,250Plus: First-Phase Allocation$24,750$27,150$51,900Totals$30,035$35,965$66,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%P-1 (labor-hour basis)$15,017.50$15,017.50$30,035P-2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7Step 1: Set up and Solve Simultaneous EquationsAllocated S1 Costs = Traceable Costs + Cost allocated from S2S1 = $5,850 + (10% x S2)Allocated S2 Costs = Initial allocation + Cost allocated from S1S2 = $8,250 + (40% x S1)The second equation is substituted into the first as follows:S1 = $5,850 + 10% x [$8250 + (40% x S1)]S1 = $6,953.13Then the S1 figure is substituted into the second equation:S2 = $8,250 + [40% x ($6,953.13)]S2 = $11,031.25
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step: Allocation from Service Depts. To Prod. DepartmentsP-1P-2TotalS-1Service % to prod. depts.30%30%Allocated amount2,0862,086S-2Service % to prod. depts.30%60%Allocated amount$3,309$6,619Plus Phase-1 Allocation24,75027,150Totals30,14535,85566,000
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Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step:P-1P-2TotalS-1Service % to production departments30%30%Allocation amount2,0862,086S-2Service % to production departments30%60%Allocation amount$3,309$6,619Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,14535,85566,000
Sheet9Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%P-1 (labor-hour basis)$15,072.50$15,072.50$30,145P-2 (mahine-hour basis)8,963.7526,891.25$35,855Totals$24,036.25$41,963.75$66,000
Sheet10
Sheet11
Sheet12
Sheet13
Sheet14
Sheet15
Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step:P-1P-2TotalS-1Service % to production departments30%30%Allocation amount2,0862,086S-2Service % to production departments30%60%Allocation amount$3,309$6,619Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,14535,85566,000
Sheet9Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,072.50$15,072.50$30,145Production 2 (mahine-hour basis)8,963.7526,891.25$35,855Totals for each product$24,036.25$41,963.75$66,000
Sheet10Point 1Point 2SellingJoint costs are incurredSplit-off PointPrice2,000 lbs Tuna Filets$2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$1.65/lb$16,0004,000 lbs By-products, Scrap,and Waste
Sheet11
Sheet12
Sheet13
Sheet14
Sheet15
Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step:P-1P-2TotalS-1Service % to production departments30%30%Allocation amount2,0862,086S-2Service % to production departments30%60%Allocation amount$3,309$6,619Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,14535,85566,000
Sheet9Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,072.50$15,072.50$30,145Production 2 (mahine-hour basis)8,963.7526,891.25$35,855Totals for each product$24,036.25$41,963.75$66,000
Sheet10Point 1Point 2SellingJoint costs are incurredSplit-off PointPrice2,000 lbs Tuna Filets$2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$1.65/lb$16,0004,000 lbs By-products, Scrap,and Waste
Sheet11Phys.AllocationUnitsof JointCost perProduct(lbs.)ProportionCostPoundTuna filets$2,00020%$3,200$1.60Canned tuna$8,00080%12,800$1.60Total$10,000100%$16,000
Sheet12
Sheet13
Sheet14
Sheet15
Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step:P-1P-2TotalS-1Service % to production departments30%30%Allocation amount2,0862,086S-2Service % to production departments30%60%Allocation amount$3,309$6,619Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,14535,85566,000
Sheet9Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,072.50$15,072.50$30,145Production 2 (mahine-hour basis)8,963.7526,891.25$35,855Totals for each product$24,036.25$41,963.75$66,000
Sheet10Point 1Point 2SellingJoint costs are incurredSplit-off PointPrice2,000 lbs Tuna Filets$2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$1.65/lb$16,0004,000 lbs By-products, Scrap,and Waste
Sheet11PhysicalAllocationCost perProductMeasure (in lbs)Proportionof Joint CostPoundTuna filets$2,00020%$3,200$1.60Canned tuna$8,00080%12,800$1.60Total$10,000100%$16,000
Sheet12UnitsPriceSalesAlloc. OfCost perProduct(in lbs.)per unitValueProportionJoint CostPoundTuna filets2,000$2.20$4,40025%$4,000$2.00Canned tuna8,000$1.65$13,20075%12,000$1.50Total10,000$17,600100%$16,000
Sheet13
Sheet14
Sheet15
Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step:P-1P-2TotalS-1Service % to production departments30%30%Allocation amount2,0862,086S-2Service % to production departments30%60%Allocation amount$3,309$6,619Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,14535,85566,000
Sheet9Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,072.50$15,072.50$30,145Production 2 (mahine-hour basis)8,963.7526,891.25$35,855Totals for each product$24,036.25$41,963.75$66,000
Sheet10Point 1Point 2SellingJoint costs are incurredSplit-off PointPrice2,000 lbs Tuna Filets$2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$1.65/lb$16,0004,000 lbs By-products, Scrap,and Waste
Sheet11PhysicalAllocationCost perProductMeasure (in lbs)Proportionof Joint CostPoundTuna filets$2,00020%$3,200$1.60Canned tuna$8,00080%12,800$1.60Total$10,000100%$16,000
Sheet12PriceSalesAllocationCost perProductUnits (in lbs)per unitValueProportionof Joint CostPoundTuna filets$2,000$2.20$4,40025%$4,000$2.00Canned tuna$8,000$1.65$13,20075%12,000$1.50Total$10,000$17,600100%$16,000
Sheet13Point 1Point 2Point 3Joint costs are incurredSplit-off PointAddt'l Processing2,000 lbs Tuna Filets@ $2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$16,000@$1.65/lbProcessing Cost3,000 lbs Cat Food3,000 lbs Cat Food$850@$1.75/lb1,000 lbs By-products, Scrap,and Waste
Sheet14
Sheet15
Sheet1TotalTotalS-1S-2P-1P-2HoursAmountLabor-hours$1,800$1,200$3,600$5,400$12,000Machine-hours$320$160$1,120$1,600$3,200Direct costs1,6005,50015,50013,40036,000Indirect labor$25,000Indirect materials$5,00066,000
Sheet2S-1S-2P-1P-2TotalDirect labor-hours (DLH)$1,800$1,200$3,600$5,400$12,000Percent15%10%30%45%100%Machine-hours$320$160$1,120$1,600$3,200Percent10%5%35%50%100%Phase 1: Trace Direct Costs and Allocate Overhead Costs to DepartmentsDirect costs1,6005,50015,50013,40036,000Overhead cost to departmentsIndirect labor (DLH)$3,750$2,500$7,500$11,25025,000Indirect materials (MH)$500$250$1,750$2,5005,000Total for all departments5,8508,25024,75027,15066,000
Sheet3P-1P-2TotalS-1Service % to production departments30%30%Allocation % per direct method50%50%Allocation amount2,9252,925S-2Service % to production departments30%60%Allocation % per direct method33.33%66.67%Allocation amount$2,750$5,500Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,42535,57566,000
Sheet4Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,212.50$15,212.50$30,425Production 2 (mahine-hour basis)8,893.7526,681.25$35,575Totals for each product$24,106.25$41,893.75$66,000
Sheet5S-2P-1P-2TotalFirst Step - Allocation of S-1Service percent40%30%30%Amount2,3401,7551,755Second Step - Allocation of S-2Service percent30%60%Allocation percent per direct method33.33%66.67%Amount10,590$3,530$7,060Plus: First Phase Allocation$24,750$27,150Totals for production departments$30,035$35,965$66,000
Sheet6Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,017.50$15,017.50$30,035Production 2 (mahine-hour basis)8,991.2526,973.75$35,965Totals for each product$24,008.75$41,991.25$66,000
Sheet7This method is considered the most accurate because it considers all reciprocal flowsusing simulateous equations:Allocated S-1 Costs = Initial allocation + Cost allocated from S-2S-1 = $5,850 + 10% x S-2Allocated S-2 Costs = Initial allocation + Cost allocated from S-1S-2 = $8,250 + 40% x S-1The second equation is substituted into the first as follows:S-1 = $5,850 + 10% x ($8250 + 40% x S-1)S-1 = $6,953.13Then the S-1 figure is substituted into the second equation:S-2 = $8,250 + 40% x ($6,953.13)S-2 = $11,031.25
Sheet8Second Step:P-1P-2TotalS-1Service % to production departments30%30%Allocation amount2,0862,086S-2Service % to production departments30%60%Allocation amount$3,309$6,619Plus Phase 1 Allocation Amount24,75027,150Total for Production Departments30,14535,85566,000
Sheet9Product 1Product 2TotalLabor-hoursHours$1,800$1,800$3,600Percent50%50%Machine-hoursHours$400$1,200$1,600Percent25%75%Production 1 (labor-hour basis)$15,072.50$15,072.50$30,145Production 2 (mahine-hour basis)8,963.7526,891.25$35,855Totals for each product$24,036.25$41,963.75$66,000
Sheet10Point 1Point 2SellingJoint costs are incurredSplit-off PointPrice2,000 lbs Tuna Filets$2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$1.65/lb$16,0004,000 lbs By-products, Scrap,and Waste
Sheet11PhysicalAllocationCost perProductMeasure (in lbs)Proportionof Joint CostPoundTuna filets$2,00020%$3,200$1.60Canned tuna$8,00080%12,800$1.60Total$10,000100%$16,000
Sheet12PriceSalesAllocationCost perProductUnits (in lbs)per unitValueProportionof Joint CostPoundTuna filets$2,000$2.20$4,40025%$4,000$2.00Canned tuna$8,000$1.65$13,20075%12,000$1.50Total$10,000$17,600100%$16,000
Sheet13Point 1Point 2Point 3Joint costs are incurredSplit-off PointAdditional Processing2,000 lbs Tuna Filets@ $2.20/lb14,000 lbsUnprocessed Tuna8,000 lbs Canned Tuna$16,000@$1.65/lbProcessing Cost3,000 lbs Cat Food3,000 lbs Cat Food$850@$1.75/lb1,000 lbs By-products, Scrap,and Waste
Sheet14SalesAdditionalProductPoundsPriceValueProcessingTuna filets2000$2.20$4,400$0.00Canned tuna8000$1.65$13,200$0.00Cat food3000$1.75$5,250$850.00Total13,000$22,850$850.00PercentAllocatedTotalCost perProductNRVof NRVCostCostPoundTuna filets$4,40020%$3,200$3,200$1.60Canned tuna$13,20060%$9,600$9,600$1.20Cat food$4,40020%$3,200$4,050$1.35Total$22,000100%$16,000$16,850
Sheet15