Question
Quiz company produces four products from a common input. Joint costs to produce one batch total $130,000. All products can either be sold. Gallons Weight
Quiz company produces four products from a common input. Joint costs to produce one batch total $130,000. All products can either be sold.
Gallons | Weight Factor | Sales Price At Split-Off | Processing cost | Processed Sales Value | |
Product 1 | 1,400 | 1.0 | $15 / gal | $2 / gal | $20 / gal |
P,2 | 2,600 | 2.0 | 20 | 4 | 25 |
P,3 | 2,500 | 1.5 | 26 | 5 | 30 |
P,4 | 3,500 | 2.5 | 35 | 5 | 40 |
Note: For all questions, round allocation ratios to four decimal points, and round all dollar amounts to the nearest dollar. Give your answers using dollar signs and commas but no decimal points (cents). EXAMPLE: $12,365.
1. Determine the amount of joint costs allocated to product 1 using the physical units method
2. Determine the amount of joint costs allocated to product 1 using the weighted average method
3. Determine the amount of joint costs allocated to product 1 using the sales value at split-off method
4. Determine the amount of joint costs allocated to product 1 using the net realizable value method
5. Determine the amount of joint cost allocated to product 1, using the e constant gross margin percentage method (use sales value after processing)
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