Klocating Joint Costs Using The Constant Gross Margin Method A Company Manufactures Three Products T Ten Trol And Dio 1 (35.4 KiB) Viewed 56 times
Klocating Joint Costs Using The Constant Gross Margin Method A Company Manufactures Three Products T Ten Trol And Dio 2 (30.27 KiB) Viewed 56 times
Klocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, t-Ten, Trol, and Dioze, from a joint process. Each production run costs $12,000. None of the products can be sold at split off, but must be procesu further information on one batch of the three products is as follows: Further Processing Cost per Gallon Eventual Market Price per Gallon Product Gallons Ten 3,700 50.50 $2.00 Triol 4,000 1.00 5.00 Prode 2,600 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of 1. Ten, Trol, and Mode. Total Revenue Total Costs Total Gross Profit 2. Allocate the joint cost to L Ten, Trol, and prose on the constant gross margin percentage method. Round the gross maron percentage to four decimal places and round other computations to the nearest dollar Joint Cost Product Allocation
2. Allocate the joint cost to Llen, Triol, and Proze using the constant gross margin percentage method. Round the gross megin percentage to four decimal places and round all other computations to the newest dollar Joint Cost Product Allocation Ten Triol Proze Total (Note: The joint cost allocation does not equal due to rounding.) 3. What if it cost 52.00 to process each gallon of Tool beyond the spit off point? How would that affect the allocation of Joint cost to these three products? Hound the grous margin percentage to four decimal places and round all other computations to the nearest dotter Joint Cost Product Allocation L-Ten Thol Pione Total (Note: The joint cost allocation does not equal due to rounding)
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