Joint Product Cost Allocation—Same Gross Profit Percentage for Each Joint Product. Lond Company produces joint products Jana and Reta, together with by-product Bynd. Jana is sold at split-off, but Reta and Bynd undergo additional processing. Production data pertaining to these products for the year ended December 31, 19A are as follows: LO5 Jana Reta Bynd Total Joint costs:

Variable.

$ 88,000 Fixed.

148,000 Separable costs:

Variable.

$120,000

$ 3,000 123,000 Fixed.

90,000 2,000 92,000 Production in pounds.

. 50,000 40,000 10,000 100,000 Sales price perpound.

. $ 4.00

$ 7.50

$ 1.10 There are no beginning or ending inventories. No materials are spoiled in production. Variable costs change in direct proportion to production volume. Joint costs are allocated to joint products to achieve the same gross profit percentage for each joint product. Net revenue from by-product Bynd is deducted from pro¬ duction costs of the main products.

Required:

(1) Compute the total gross profit for the joint products.

(2) Allocate the joint costs to Jana and Reta.

(3) Compute the gross profit for Jana and for Reta.