Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allocating Joint Costs Using the Constant Gross Margie Method A company manufactures the products, ther, and are from outros tach produce un costs $12.700 of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Allocating Joint Costs Using the Constant Gross Margie Method A company manufactures the products, ther, and are from outros tach produce un costs $12.700 of the products can be traced further in ne both at the the products for Further Processing Eventual Market Product Gallen Cest per Gallen Price per Gallon 3,700 30. 13.00 4,000 3.00 W.00 2.300 1.50 0.00 Required 1. Calculate the total revenue, total costs, and to press protette cammy wit van one of Life, Thol, and proce Total Revenue QUU Total Coats Total Gross Profit 2. Allocate the paint cast to ten, and protecting the constant pour percentage murod. Round the gross margin percentage to four decimal places and round all other computations to the nearest dallar Joint Cost Product Allocation Ten Tho Po Total (Matei The Joint cost a location does not equal to rounding 1 3. What if it cost 52.00 to process each of Tral beyond the off point? How would that affect me whection of joint cost these products Round the grous margin percentage to four decimal places and round all other computations to the nearest dollar Joint Cost Product Allocation Trial Prome Nobe. The joint cost location does not equal due to rounding Check My Work renom Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Plore, from a joint process. Each production run costs $12,700, None of the products can be sold at split-off, but must be processed further Information on one batch of the three products is as follows: Product Further Processing Cost per Gallon $0.50 Eventual Market Price per Gallon Gallons L-Ten -3,700 $2.00 Triol 4,000 1.00 5.00 Pione 2,300 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-ten, Triol, and Pioze. Total Revenue Total Costs Total Gross Profit 2. Allocate the joint cost to L-Ten, Trol, and Pioze using the constant gross margin percentage method, Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost 2. Allocate the joint cost to L-Ten, Triel, and Ploze using the constant gross margin percentage method, Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost Product Allocation L-Ten Triol Ploze Total (Note: The joint cost allocation does not equal due to rounding) 3. What if it cost $2.00 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost Product Allocation L-Ten Trio Ploze Total Thanal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner

International 11th Edition

007115809X, 978-0071158091

More Books

Students also viewed these Accounting questions