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Please answer the added questions (sales value method & gross margin percentage method) and show the steps. Thanks a lot. 16-19 Alternative joint-cost-allocation methods, further-process
Please answer the added questions (sales value method & gross margin percentage method) and show the steps.
Thanks a lot.
16-19 Alternative joint-cost-allocation methods, further-process decision. The Wood Spirits Company produces two productsturpentine and methanol (wood alcohol)by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $3 per gallon, and turpentine, $2 per gallon. Methanol sells for $21 per gallon. Turpentine sells for $14 per gallon. 1. How much of the joint costs per batch will be allocated to turpentine and to methanol, assuming that joint costs are allocated based on the number of gallons at splitoff point? Sabia valen method ? Cross margin percentage methodStep by Step Solution
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