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Lancaster Company produces two joint products, Prcouct A and Product B, in its manufacturing operations. At the beginning of April, there were no work-in-process or
Lancaster Company produces two joint products, Prcouct A and Product B, in its manufacturing operations. At the beginning of April, there were no work-in-process or finished goods inventories. Data about sales, production and costs for April are as follows: Cost Data: Cost incurred pior to the split-off point $22,000 Separate costs incurred beyond the split-off point: For Product A $5,000 For Product B $4,000 Sales and Production Data: Units Produced Units Sold Sales Price per Unit Product A 1,200 800 $50 Product B 800 800 If joint costs are allocated using the constant gross margin percentage method, the joint costs will be allocated to product of 88.75 percent 72.50 percent None of the answers are correct. 38.75 percent. 61.25 percent $25
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