A joint manufacturing process is used to manufacture 51,000 litres of P57 at a joint cost of
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Question:
A joint manufacturing process is used to manufacture 51,000 litres of P57 at a joint cost of $1,838,800.
This is further processed into Product A27 and C45.
A27 - 42,000 Litres of P57 is used to manufacture 21,000 litres A27 at a further processing cost of $165,000. A27 sells for $145 per litre.
C45 - 9,000 litres of P57 is used to manufacture 9,000 litres of C45 at further processing cost of $212,000. C45 is sold for $72.00 per litre.
Allocate the joint manufacturing cost using the constant gross margin method.
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