The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. The following material was collected for the month of January. There was no beginning inventory.

Direct materials processed:                    250,000 gallons (242,500 gallons of good product)

Production:        Mr. DirtOut                 147,500 gallons

Mr. SinkClean             95,000 gallons

Sales:                  Mr. DirtOut                 140,500 at $110 per gallon

Mr. SinkClean             91,000 at $ 100 per gallon

The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $380,000.

1

What are the physical-volume proportions to allocate joint costs for Mr.

DirtOut and Mr. SinkClean, respectively?

59. 59.00% and 41.00%
60. 60.82% and 39.18%
61. 39.18% and 60.82%
62. 59.79% and 40.21%

2

When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean?

1. $231,116 and $148,884
2. $224,200 and $155,800
3. $227,202 and $152,798
4. $230,626 and $149,374

3

When using the physical-volume method, what is Mr. DirtOut’s approximate production cost per unit?

1. $1.52
2. $1.54
3. $1.57
4. $1.61