Answer:
a. 75,000
b. 50,000
c. 75,000
Step-by-step explanation:
The computation of allocating the joint cost using the physical units method is shown below:
[tex]Allocation\ rate = \frac{Joint\ costs}{Total\ number\ of\ products}[/tex]
[tex]= \frac{\$200,000}{300 + 200 + 300}[/tex]
[tex]Allocation\ rate = \frac{200,000}{800}[/tex]
= 250
For face cream
[tex]= Unit\ produced\times Allocation\ rate[/tex]
= [tex]300\times 250[/tex]
= 75,000
For body lotion
[tex]= Unit\ produced\times Allocation\ rate\\\\ = 200\times 250[/tex]
= 50,000
For Liquid soap
[tex]= Unit\ produced\times Allocation\ rate\\\\ = 300\times 250[/tex]
= 75,000
hence, we simply applied the above formula by multiplying the units produced with the allocation rate so that each one allocation cost could come
