Question: Larry Dean raises registered Labrador retrievers Dean s prize dog has

Larry Dean raises registered Labrador retrievers. Dean’s prize dog has just given birth to six puppies. The litter consisted of two chocolate males, two yellow males, and two yellow females. The stud fee, veterinary bills, and other costs associated with the dog’s pregnancy amounted to $700. The puppies were kept with their mother for 12 weeks before they could be sold. During this time, feeding and medical bills for each of the puppies amounted to $160. In addition, the two chocolate males required additional veterinary costs of $40 each. At 12 weeks, the two chocolate males were sold for $300 each, the two yellow males were sold for $400 each and the females were sold for $450 each.

A. Using the NRV method, allocate the joint costs.
B. Determine the gross profit that would be recognized from the sale of each dog.

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  • CreatedJanuary 26, 2015
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