2. Constant gross margin percentage NRV method. (4+64+4=18) (a) Show the calculation of Gross Margin Percentage below: (4) (b) ghow the allocation of Joint costs: (6) Answer: (B) Why are joint costs irrelevant in the "sell or process further" decision? (4) (B) Why are joint costs irrelevant in the "sell or process further" decision? (4) 2 (C) "Market value at split-off point method is considered a better method of joint cost allocation over physical unit method." Do you agree? Explain. (4) (A) Waterloo company manufactures four joint products which have a manulacturing cost of $120,000 at the split-off point. Data pertaining to these products are as follows: Required: Allocate the joint costs under each of the following methods: 1. Estimated Net Realisable Value method (NRV); and (12) 2. Constant gross margin percentage NRV method. (4+8+4+4=18) Solution: 1. Estimated NRV method (12)