Stanwick Company produces two chemicals in a joint production process. Joint Costs of Production are $30,000....

 

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Stanwick Company produces two chemicals in a joint production process. Joint Costs of Production are $30,000. Information about the two chemicals is as follows: Chemical A Quantity (kg) 80 Sales Value at Split Off $15,000 Further Processing Costs $4,000 Sales Value after Further $16,000 Processing Allocate the joint costs of production using: 1. Physical Measures Method 2. Relative Sales Value Method 3. Net Realizable Value Method B 125 $60,000 $2,000 $62,500 4. Constant Gross Margin Method Also determine if the products should be sold at split off or after further processing. Stanwick Company produces two chemicals in a joint production process. Joint Costs of Production are $30,000. Information about the two chemicals is as follows: Chemical A Quantity (kg) 80 Sales Value at Split Off $15,000 Further Processing Costs $4,000 Sales Value after Further $16,000 Processing Allocate the joint costs of production using: 1. Physical Measures Method 2. Relative Sales Value Method 3. Net Realizable Value Method B 125 $60,000 $2,000 $62,500 4. Constant Gross Margin Method Also determine if the products should be sold at split off or after further processing.