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    Cost Allocation

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    Zenon Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:

    Product
    Units Produced
    Sales Value at Splitoff Point

    Turpentine
    6,000 liters
    $60,000

    Paint thinner
    6,000 liters
    50,000

    Spot remover
    3,000 liters
    25,000

    Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used.

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    https://brainmass.com/business/accounting/zenon-chemical-joint-cost-allocation-each-product-331673

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