Question: Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and
Calamata Corporation processes a single material into three separate products A, B, and C. During
September, the joint costs of processing were $300,000. Production and sales value information for the
month were as follows:
Product - Units Produced - Final SalesValue per Unit - Separable Costs
A - 10,000 - $25 - $125,000
B - 15,000 - 30 - 250,000
C - 12,500 - 24 - 125,000
Required:
Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV
method is used.
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