Chapter 7 BEX .11 PLEASE ANSWER IN SAME FORMAT OR BOLD ANSWERS

bex

Allocating Point Casts using the Constant Grass Margin Method A company manufactures three products, L-Ten, Trol, and Ploze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Further Processing Cost per Gallon Eventual Market Price per Gallen Product Gallons L-Ten $0.50 $2.00 3,500 4,000 Trigl 1.00 5.00 Pioze 2.500 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will carn on the sale of L-Ten, Triol, and Plaze. Total Revenue $ 2,084 X Total Costs $ Totel Gruss Profit $ 2. Allocate the joint cost to L-Ten, Trol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost Product Allocation L-Ten $ Tho Ploze Total (Note: The joint cost allocation does not equal 512,900 due to rounding.) 3. What if it cost $2 ta process each gallan af Tricl beyond the spit-off point? How would that affect the allocation 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. Joint Cost Product Allocation L-Ten Trial Pioze Total (Note: The Joint cost allocation does not coual 12,900 due to rounding.)