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2 10 ponts Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216, Sales and production information for each of the
2 10 ponts Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216, Sales and production information for each of the three adhesives are shown in the following table Most of Johnston's customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston produces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston's customers requested the heat-resistant version of the products so that all production required additional separable processing. Total joint cost for the three products is $2.563,000 Gallons sold A101 109,000 A204 154,000 110,000 Final sales price per gellon " $ $ Price at split-aff 4 Separable processing cost $424,000 5100,000 $420,000 Required: 1. Calculate the unit product cost and total gross margin for each of the three product lines using the following methods: (a) physical measure method (b) sales value at split-off method, to the net realizable value method, and (d) the constant gross margin percentage method (Round intermediate calculations and cost per unit answers to 4 decimal places. Round your final answers to whole dollar amounts. Negative amounts should be indicated with a minus sign.) Physical Measure Method Cost per unit Total gross margin 6 Sales Value at Siple On Method Cast per un Tatal grows margin Net Reatrable Value Method Cost per un Total gross margin e Constant Gross Margin Method Cost per unh Total gross margin A101 A204 0216
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