Question
Use the following information for Questions 8 through 10: Allison, Inc., produces two products, X and Y, in a single joint process. Last month the
Use the following information for Questions 8 through 10: Allison, Inc., produces two products, X and Y, in a single joint process. Last month the joint costs were $75,000 when 10,000 units of Product X, and 15,000 units of Product Y were produced. Addi-tional processing costs were $15,000 for Product X and $10,000 for Product Y. Product X sells for $10, and Product Y sells for $5.
10. The joint cost allocations to Products X and Y using the constant gross margin percentage method would be:
X Y
a. $30,000 $45,000
b. $42,500 $32,500
c. $42,143 $32,857
d. $45,000 $30,000
e. none of the above.
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