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Answer :
Zigma Enterprises uses the physical measure allocation method to allocate the joint costs of cultivating rice.
This is because the company is allocating the joint costs based on the physical quantity of the rice grain and hay produced. The rice milling process yields 6,000 pounds of rice grain and 2,000 pounds of hay, with 75% of the joint costs allocated to the rice grain and 25% allocated to the hay.
Zigma Enterprises uses the Sales Value at Split-off method to allocate the joint costs of cultivating rice. In this method, the joint costs are allocated to the products (rice grain and hay) based on their relative sales values at the split-off point, which is the point where the products are separated and can be sold. In this case, the rice grain receives 75% of the joint cost, and the hay receives 25%.
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