The constant gross margin percentage NRV method of joint cost allocation a involves allocating costs in such a way that maintaining the same gross margin percentage for each product that was obtained in prior years b computes gross margin before allocating the costs to the individual joint products c is the same as the estimated NRV method d is the same as the sales value at split off method A company produces three products from a joint production process A, B, and C As a percentage of total sales value, a represents 50 , B 49 5 , and C 5 Product C could be considered a a primary product b main product c byproduct d waste product Bismite Corporation purchases trees from Cheney lumber and processes them up to the split off point where two products (paper and pencil casings) emerge from the process The products are then sold to an independent company that markets and distributes them to retail outlets The following information was collected for the month of October Trees processed 310 trees Production paper 190,000 sheets pencil casings 190,000 Sales paper 178,000 at $0 10 per page pencil casings 189,000 at $0 14 per casing The cost of purchasing 310 trees and processing them up to the split off point to yield 190,000 sheets of paper and 190,000 pencil casings is $13,500 Bismite's accounting department reported no beginning inventory If the sales value at split off method is used, what are the joint costs assigned to ending inventory for paper (Round intermediary percentages to the nearest hundredth ) a $355 29 b $29 61 c $497 34 d $379 24 The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk The following information was collected for the month of June Direct Materials processed 27,500 gallons (after shrinkage) Production Butter Cream 12,500 gallons Condensed Milk 15,000 gallons Sales Butter Cream 12,000 gallons Condensed Milk 14,500 gallons Sales Price Butter Cream $4 50 per gallon Condensed Milk $8 00 per gallon Separable costs in total Butter Cream $13,000 Condensed Milk $35,600 The cost of purchasing the of unprocessed milk and processing it up to the split off point to yield a total of 27,500 gallons of saleable product was $53,000 The company uses constant gross margin percentage NRV method to allocate the joint costs of production What is the allocated joint costs of Butter Cream (Round intermediary percentages to the nearest hundredth ) a $33,580 b $13,000 c $35,600 d $19,428

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The constant gross-margin percentage NRV method of joint cost allocation ________. a. involves allocating costs in such a way that maintaining the same gross margin

The constant gross-margin percentage NRV method of joint cost allocation ________.

	a.	involves allocating costs in such a way that maintaining the same gross margin percentage for each product that was obtained in prior years
	b.	computes gross margin before allocating the costs to the individual joint products
	c.	is the same as the estimated NRV method
	d.	is the same as the sales-value at split-off method

A company produces three products from a joint production process:: A, B, and C. As a percentage of total sales value, a represents 50%, B 49.5%, and C .5%. Product C could be considered a ________.

a.
primary product

b.
main product

c.
byproduct

d.
waste product

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October:

Trees processed: 310 trees

Production: paper 190,000 sheets

pencil casings 190,000

Sales: paper 178,000 at $0.10 per page

pencil casings 189,000 at $0.14 per casing

The cost of purchasing 310 trees and processing them up to the split-off point to yield 190,000 sheets of paper and 190,000 pencil casings is $13,500.

Bismite's accounting department reported no beginning inventory.

If the sales value at split-off method is used, what are the joint costs assigned to ending inventory for paper? (Round intermediary percentages to the nearest hundredth.)

a.
$355.29

b.
$29.61

c.
$497.34

d.
$379.24

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

Direct Materials processed: 27,500 gallons (after shrinkage)

Production:	Butter Cream	12,500	gallons
	Condensed Milk	15,000	gallons
Sales:	Butter Cream	12,000	gallons
	Condensed Milk	14,500	gallons
Sales Price:	Butter Cream	$4.50	per gallon
	Condensed Milk	$8.00	per gallon
Separable costs in total:	Butter Cream	$13,000
	Condensed Milk	$35,600

The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $53,000.

The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.)