Question
Canada Wire Products processes copper into wire. It makes 16-gauge and 14-gauge wire. During April, the joint costs of processing the aluminium were $365,000. There
Canada Wire Products processes copper into wire. It makes 16-gauge and 14-gauge wire. During April, the joint costs of processing the aluminium were $365,000. There were no beginning or ending inventories for the month. Production and sales value information for the month were as follows:
Product | Feet | Separable costs | Selling price |
14 gauge | 200,000 | $0.20 per metre | $0.90 per metre |
16 gauge | 600,000 | 0.30 Per metre | 1.00 per metre |
Determine the amount of joint costs allocated to each product using the net realizable value method and the constant gross margin percentage of the NRV method. (show work for full mark)
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