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Products G and H are joint products developed from the same process with each being processed further. Joint costs are incurred until splitoff, the separable

Products G and H are joint products developed from the same process with each being processed further. Joint costs are incurred until splitoff, the separable costs are incurred in further refining each product. Sales value at splitoff method is used to allocate joint costs. If the sales value of G at splitoff decreases and all other costs and selling prices remain unchanged, then

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Gs gross margin decreases; Hs gross margin decreases

Gs gross margin decreases; Hs gross margin increases

Gs gross margin increases; Hs gross margin decreases

Gs gross margin increases; Hs gross margin increases

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