Problem $7-45($Algo$)$ Joint Products $[$LO $7-6]$

Johnston Adhesives Company makes three widely used industrial adhesives: A$101.$ A$204,$ and B$216.$ Sales and production information

for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blend of the three

products, which improves heat$-$resistance. The additional separable processing requires additional time and materials, and the price is

increased accordingly, as shown in the table. Assume that Johnston produces only for specific customer orders, so there is no

beginning or ending inventory. Assume also that all of Johnston's customers requested the heat$-$resistant version of the products so

that all production required additional separable processing. Total joint cost for the three products is $$3,293,000.$

Requlred:

Calculate the unit product cost and total gross margin for each of the three product lines using the following methods: $($a$)$ physical

measure method, $($b$)$ sales value at split$-$off method, $($c$)$ the net realizable value method, and $($d$)$ the constant gross margin percentage

method. $($Do not round Intermedlete calculetlons. Round cost per unlt onswers to $4$ declmal pleces ond gross margin answers to

the nearest whole dollar. Negatlve omounts should be Indleated with a minus sign.$)$