Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instant Foods produces two types of microwavable products- beef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodles and spices. The

Instant Foods produces two types of microwavable products- beef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodles and spices. The production of ramen results in a waste product referred to as stock, which Instant dumps at negligible costs at a local drainage area. In June 2009, the following data were reported for the production and sales of beef-flavored and shrimp-flavored ramen.

Due to the popularity of its microwavable products, Instant decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are to be sold under the names Special B and Special S, respectively. The following is the monthly data for all the products

Required

Calculate Instants gross-margin percentage for Special B and Special S when joint

costs are allocated using the following:

a. Sales value added at splitoff method

b. Net realizable value method

Please show your work, thank you!

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

Principles Of External Auditing

Authors: Brenda Porter, Jon Simon, David Hatherly

1st Edition

0471962120, 978-0471962120

More Books

Students also viewed these Accounting questions

Question

what is a peer Group? Importance?

Answered: 1 week ago

Question

2. Are you varying your pitch (to avoid being monotonous)?

Answered: 1 week ago

Question

3. Are you varying your speaking rate and volume?

Answered: 1 week ago