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Keiffer Production manufactures three joint products in a single process. The following information is available for August 2010:
Product Gallons Sales value Cost after Final
at splitoff splitoff sales
per gallon price
JP-4539 4500 $14 $4 $24
JP-4587 18000 8 5 15
JP-4591 13500 18 2 22
Allocate the joint cost of $558,000 to the production based on the
number of gallons.
sales value at split-off.
approximated net realizable values at split-off.
a.Number of gallons.
Round percentages to one decimal place i.e. 25.5% or .255.
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