The physical units method use gallons as a measure of the products at the split off point in the following way
Explanation:
The physical measure method allocates cost by the weight, volume, or some other measurement of the product that's produced. It's a contrast to relative sales value. In this case, assume that the weight or volume for each two-by-four is the same. So you allocate joint costs based on the number of units produced.
Allocates joint costs to joint products on the basis of the relative weight, volume, or other physical measure at the splitoff point of total production of the products. -Inventories are carried at estimated NPV, and income on each product is reorganized when production is completed.
Allocates joint costs to joint products on the basis of the relative weight, volume, or other physical measure at the splitoff point of total production of the products. -Inventories are carried at estimated NPV, and income on each product is reorganized when production is completed