• Primark Company processes clothes into three products. During April, the joint costs of processing were $240,000. Production and sales value information for the month were as follows:

Product	Units Produced	Sales Value at Splitoff Point	Units Sold	Separable costs
Tshirts	12,000	180,000	10,000	24,000
Pants	8,000	160,000	7000	64,000
Dresses	4,000	200,000	2500	32,000

Required:

Determine the amount of gross profit to each product if the NRV at splitoff method is used.

Journalize the following transactions:

A) For XYZ Company

B) For ABC Company

• April 8 - XYZ sold merchandise to ABC amounting to $10,000. Terms: 2/10,n/30. FOB Shipping Point, Freight cost $1200. The cost of merchandise was 6000.
• April 11 ABC paid cash to XYX
• April 15- ABC sold merchandise to QBZ, $18,000 terms: 2/5,n/15. Cost of goods was 10,000. FOB Destination $450

April 23- QBZ paid the full payment