Vanguard Company Makes Three Products,M,N,and P,which Come from a Joint

question 26

Essay

Vanguard Company makes three products,M,N,and P,which come from a joint process.The joint costs for each batch of the products are: $80,000 for direct materials,$40,000 for direct labor,and $30,000 for indirect costs (overhead).Each batch produces 10,000 pounds of product M with a market value of $6 per pound; 5,000 pounds of N with a market value of $12 per pound; and 9,000 pounds of P with a market value of $10 per pound.
Required:
1)Determine the total amount of joint cost allocated to each of the products,assuming that the allocation is based on the weight of products produced.(Do not round intermediate calculations.Round each of your final answers to the nearest whole dollar.)
2)Determine the total amount of joint cost allocated to each of the products,assuming that the allocation is based on the market value of the products.(Do not round intermediate calculations.Round each of your final answers to the nearest whole dollar.)

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Definitions:

Employees

Individuals hired by an organization to perform specific tasks and responsibilities.

DVI-I

Digital Visual Interface-Integrated (DVI-I) is a type of video connector that supports both digital and analog video signals in a single interface.

Video Connectors

Hardware interfaces used to connect video sources to display devices, such as HDMI, VGA, and DisplayPort connectors.

Digital And Analog

Refers to two types of signal processing; digital uses discrete data, while analog involves continuous data representation.