Question $3$

Convad Company is one of the world$$s leading corn refiners. It produces two joint products, corn syrup and corn starch, using a common production process. In July $2015,$ Convad reported the following production and selling price information:

Required:

NRV Method

a$)$ Allocate the joint costs using the NRV method to Corn Starch and Corn Syrup.

b$)$ Calculate the per$-$unit product cost and the per$-$unit gross margin for both Corn Starch and Corn Syrup.

c$)$ Calculate the COGS which would result from sales in July $2015.$

Constant Gross Margin $\%$ of NRV method

d$)$ Allocate the joint costs using the Constant Gross Margin $\%$ of NRV method to Corn Starch and Corn Syrup.

e$)$ Calculate the per$-$unit product cost and the per$-$unit gross margin for both Corn Starch and Corn Syrup.

f$)$ Calculate the COGS which would result from sales in July $2015.$