# Question & Answer: Exercise 7.26 (Algorithmic) Sales-Value-at-Split-off Method…..

Exercise 7.26 (Algorithmic)
Sales-Value-at-Split-off Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

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 Direct materials \$60,000 Direct labor 34,000 Overhead 26,000

At the split-off point, a batch yields 1,800 barlon, 2,300 selene, 2,200 plicene, and 3,900 corsol. All products are sold at the split-off point: barlon sells for \$15 per unit, selene sells for \$24 per unit, plicene sells for \$26 per unit, and corsol sells for \$36 per unit.

Required:

Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.

 Allocated Joint Cost Barlon \$ Selene \$ Plicene \$ Corsol \$ Total \$

(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)