Question
A manufacturing company processes a single material into three separate products A, B, and C. During November, the joint costs of processing were $100,000. Production
A manufacturing company processes a single material into three separate products A, B, and C. During November, the joint costs of processing were $100,000. Production and sales value information for the month were as follows:
| Product | Units Produced | Final Sales Value per Unit | Separable Costs |
| A | 14,000 | $9 | $55,000 |
| B | 14,000 | $11 | 85,000 |
| C | 20,000 | $8 | 60,000 |
Required:
Determine the amount of joint cost allocated to each product if the constant gross margin percentage of the NRV method is used.
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Introduction To Financial Accounting
Authors: CHARLES T. HORNGREN AND ET ALL.
11th Edition
9352862473, 978-9352862474
