Question
Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized for
Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000, which are allocated based on the number of pounds produced.
Type of Number of Price per pound Total further Price after powder pounds at split-off processing costs processing further
Talcom 10,000 $10 $25,000 $12.0
Baby 20,000 $8 $12,000 $9.0
Regular 50,000 $5 $30,000 $5.5
If Baby is processed further, the gross margin that will appear in a product line income statement for Baby would be:
Group of answer choices
$118,000
$130,000
$168,000
$180,000
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