Question
The Firm incurs $3,000,000 in joint costs during the production of 4 products X, B, C, and D. Additional information includes the following: Units of
| The Firm incurs $3,000,000 in joint costs during the production of 4 products X, B, C, and D. Additional information includes the following: | |||||||
| Units of Production (lbs.) | Weighting | Market Value at Split-Off | Separable Costs | Gross Revenues | |||
| X: | 10,000 | 1.00 | 2,300,000 | 200,000 | 3,000,000 | ||
| B: | 20,000 | 1.50 | 2,800,000 | 400,000 | 4,200,000 | ||
| C: | 30,000 | 2.50 | 1,000,000 | 700,000 | 2,000,000 | ||
| D: | 6,000 | 3.00 | 40,000 | 300,000 | 720,000 | ||
Calculate the joint cost allocation ONLY FOR PRODUCT X using the following methods:
Constant Gross Profit Margin? ANSWER:_______________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Carl S. Warren, William B. Tayler
16th Edition
0357715225, 9780357715222
