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can you please solve the 3 rd part these numbers the system says are incorrect Allocating Joint Costs Using the Constant Gross Margin Method A
can you please solve the 3 rd part
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Ploze, from a foint process. Each production run costs $13,000. None of the products cas be sold at split-off, but must be processed further, Information on one batch of the three products is as follows: Required: 1. Calculate the total revenue, total costs, and total gross profit the company will eam on the sale of L-Ten, Triol, and Pioze, 2. Allocate the joint cost to L-Ten, Triol, and Ploze using the constant gross margin perctntage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. 2. Allocate the joint cost to L-Ten, Triol, and Ploze using the constant gross margin percentage method, Round the gross margin percentage to four decima round all other computations to the nearest doliar. (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? gross margin percentage to four decimal places and round all other computations to the nearest dollar. (Note: The joint cost allocation does not equal due to rounding.) (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 produr gross margin percentage to four decimal places and round all other computations to the nearest dollar. (Note: The joint cost allocation does not equal due to rounding.) Feodback T Check My Work 1. The constant gross margin percentage method is used to avoid assuming that all profit occurs at the split-off point. It allocates joint cost to ensi same gross profit is applicable to all products. 2. Remember that the gross margin percentage is a function of revenues. 3. Consider Cornerstone 7.11 to show what would happen if the cost changed these numbers the system says are incorrect
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