Double Company produces three products-DBB-1, DBB-2, and...

Double Company 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 Double's production, sales, and costs follows. DBB-2 28,500 $50 DB8-1 19,000 $ 65 DB3-3 40,500 $ 75 $ 130,625 19,000 $ 52,250 28,500 $ 74,250 40,500 $ 25 $35 $55 Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost Sales Price at Split-off The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is: Multiple Choice $997,500 $1,132,297, $539,189.

Transcript

00:04 Allocate a joint cost to dresses and blouses to allocate the joint cost to dresses and blouses.

00:31 For this we need to calculate their respective sales value at the split -off point as a percentage of the total sales value as a split -off point.

00:40 So total sale value at the split -off point is dollar nine lakh sixty thousand which is given the total sales value at split -off point equals to dollar.

01:16 Percentage of dresses sales value at split -off point equals to sale value of the dresses at split -off point divided by total sale value at the split -off point.

01:28 Percentage of dresses sale value at split -off point equals to sale value of dresses, sale value of dresses divided by total sale value at split -off point.

02:16 Four lakh eighty thousand divided by nine lakh sixty thousand so which is equal zero point five or fifty percent.

02:30 So the percentage of blouses of blouses percentage of blouses percentage of blouses equals to sale of blouses divided by total sale value at split -off point which is equals to dollar one lakh twenty eight thousand divided by dollar nine lakh sixty thousand which is zero point one three three or thirteen point three percent.

03:31 So now we can allocate the joint cost.

03:34 So allocated joint cost allocated joint cost equals to total joint cost sales value at point.

04:02 So allocated joint cost of dresses equals to dollar five lakh seventy six thousand to fifty percent which is equals to dollar one lakh eighty eight thousand.

04:24 Allocated joint cost for blouses joint cost for blouses dollar five lakh seventy six thousand into thirteen point three three which is equals to dollars seventy six thousand eight hundred.

04:59 So the sales value of the split -off point is given the sales value of the split -off point for dresses...

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