Ferrier chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of b7, 75,000 pounds of k6, and 40,000 pounds of x9. a standard batch costs $600,000 to produce. the sales prices per pound are $6, $10, and $16 for b7, k6, and x9, respectively. required: a. allocate the joint product cost among the three final products using weight as the allocation base.

Allocated cost:

B7= 0.23*600,000= 138,000

K6= 0.50*600,000= 300,000

X9= 0.27*600,000= 162,000

Explanation:

Giving the following information:

Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce.

weighted average:

B7= 35,000/150,000= 0.23

K6= 75,000/150,000= 0.5

X9= 40,000/150,000= 0.27

Allocated cost:

B7= 0.23*600,000= 138,000

K6= 0.50*600,000= 300,000

X9= 0.27*600,000= 162,000

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um sure