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The Proud Bakers of Canada Company produces baking and bread flour. Joint products costs were $15,300 for the year and sales report the following
The Proud Bakers of Canada Company produces baking and bread flour. Joint products costs were $15,300 for the year and sales report the following for the end of the year. Product Baking flour Bread flour Sold (kilograms) 10,500 7,200 Ending Inventory (kilograms) 500 800 Selling price per kilogram $2.00 $1.50 Separable costs $3,000 $2,100 Required a. Allocate joint costs using the Constant Gross Margin NRV method. b. Calculate the cost per kilogram for each product. c. Prepare a Gross Margin Income Statement; report the income of each product and overall total for the company. Also provide the gross margin percentage for each product and total GM% for the company.
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Step: 1
To allocate joint costs using the Constant Gross Margin Net Realizable Value NRV method we need to follow these steps Step 1 Calculate the total sales value for each product Step 2 Calculate the gross ...Get Instant Access to Expert-Tailored Solutions
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