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i need help on question 2 Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Pioze, from
i need help on question 2
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Pioze, 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: Further Processing Cost per Gallon Eventual Market Price per Gallon Product Gallons L-Ten 3,700 $0.50 $2.00 Triol 4,000 1.00 5.00 Ploze 2,600 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 43,000 Total Costs 22,450 Total Gross Profit 20,550 2. Allocate the joint cost to L-Ten, Triol, 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 Product Allocation L-Ten $ Triol 6,442 Pioze 4,245 Total (Note: The joint cost allocation does not equal due to rounding.) Step by Step Solution
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