Chem Manufacturing Company processes direct materials up to the split-off point where two products (X and Y) are obtained and sold. The following information was collected for the month of November:

Direct materials processed: 10,000 gallons (10,000 gallons yield 9,500 gallons of good product and 500 gallons of shrinkage)

Production: x- 5,000 gallons y- 4,500 gallons

Sales: x- 4750 at $150 per gallon y- 4000 at $100 per gallon

The cost of purchasing 10,000 gallons of direct materials and processing it up to the split-off point to yield a total of 9,500 gallons of good products was $975,000.

The beginning inventories totaled 50 gallons for X and 25 gallons for Y. Ending inventory amounts reflected 300 gallons of Product X and 525 gallons of Product Y. October costs per unit were the same as November.

Using the physical-volume method, what is Product X's approximate gross-margin percentage?

Answer rating: 100% (QA)

Answer Step 1 Joint cost refers to the total cost of different products joi... View the full answer