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Marin Products 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 Marin's production, sales, and costs follows:

\begin{tabular}{|c|c|c|c|c|}
\hline & DBB-1 & DBB-2 & DBB-3 & Total \\
\hline Units Sold & 16,000 & 24,000 & 36,000 & 76,000 \\
\hline Price (after addt'l processing) & 65 & 50 & 75 & \\
\hline Separable Processing Cost & \[tex]$110,000 & \$[/tex]44,000 & \[tex]$66,000 & \$[/tex]220,000 \\
\hline Units Produced & 16,000 & 24,000 & 36,000 & 76,000 \\
\hline Total Joint Cost & & & & \[tex]$3,600,000 \\
\hline Sales Price at Split-off & 25 & 35 & 55 & \\
\hline
\end{tabular}

Calculate the amount of joint costs allocated to product DBB-1 using the physical measure method (calculate all ratios and percentages to 2 decimal places, for example, $[/tex]33.33\%[tex]$, and round all dollar amounts to the nearest whole dollar):

Multiple Choice:
A. \$[/tex]1,705,320



Answer :

GinnyAnswer
To allocate the joint costs to product DBB-1 using the physical measure method, we follow these steps:

1. Determine the total units produced:
[tex]\[ \text{Total units produced} = 16,000 + 24,000 + 36,000 = 76,000 \text{ units} \][/tex]

2. Calculate the proportion of units produced by DBB-1:
[tex]\[ \text{Proportion of DBB-1} = \frac{\text{Units produced for DBB-1}}{\text{Total units produced}} \][/tex]
[tex]\[ \text{Proportion of DBB-1} = \frac{16,000}{76,000} = 0.2105 \][/tex]

3. Calculate the joint cost allocated to DBB-1:
[tex]\[ \text{Joint cost allocated to DBB-1} = \text{Total joint cost} \times \text{Proportion of DBB-1} \][/tex]
[tex]\[ \text{Joint cost allocated to DBB-1} = 3,600,000 \times 0.2105 = 757,895 \][/tex]

Therefore, the amount of joint costs allocated to product DBB-1 using the physical measure method is:
[tex]\[ \boxed{757,895} \][/tex]

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