Question: Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, t-Ten, Triol, and Proce, from a joint process. Each production run
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, t-Ten, Triol, and Proce, from a joint process. Each production run costs 512,900 . None of the products can be sold at split-olf, but miast be processed further, Information an one batch of the three products is as fellows: Required! 1. Calculate the total revenue, total costs, and total gross profit the campany will earn on the sale of t-Ten, Thiol, and hioze. 2. Allecate the joint cost to L-Ten, Triol, and Pioze using the constart gress margin percentage method. Round the gross margin percentage to four decimal places and round alf other computations to the nearest dollar, (Note: The joint cost allocation does not equal due to rounding-) 3. What if it cost $2.00 to process each galion of Triol beyond the split-off point? How would that atfect the allocatign of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. (Note; The joint cost allocaticn does not equal due to rounding -)
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