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Columbus Distillers, Inc. processes grain and other materials to ultimately produce various forms of alcoholic beverages. The company for the most recent accounting period placed
Columbus Distillers, Inc. processes grain and other materials to ultimately produce various forms of alcoholic beverages. The company for the most recent accounting period placed $50,000 of materials, $32,000 of direct labor, and $18,000 of manufacturing overhead to produce 250,000 gallons of grain alcohol. However, the company then further processes the grain alcohol into three distinct types of alcohol: vodka, gin, and bourbon. To further process the grain alcohol, the company incurs additional costs of S15,000 to produce 100,000 gallons of vodka, $25,000 to produce 80,000 gallons of gin, and $35,000 to produce 70,000 gallons of bourbon. The selling price of the final alcohol products is as follows: S5 per gallon of vodka, $8 per gallon of gin, and $10 per gallon of bourbon. REQUIRED: (1) Allocate the joint production costs to each of the products using the physical quantities method. Round all allocation rates to six decimal places and all allocations to the nearest whole dollar. (2) Allocate the joint production costs to each of the products using the net to six decimal places and (3) Allocate the joint production costs to each of the products using the net realizable value method. Round all allocation rates all allocations to the nearest whole dollar realizable value method with a constant gross margin for each product. Round all allocation rates to six decimal places and all allocations to the nearest whole dollar
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