Compute the gross margin percentage for each product sold in December using the different methods for allocating
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Question:
Compute the gross margin percentage for each product sold in December using the different methods for allocating the $105,000 joint cost:
Sales value of total | Joint costs | ||
production at split-off | Weighting | allocated | |
A | 75000 | ||
B | 62500 | ||
C | 60000 | ||
D | 67500 | ||
265000 |
additional info:
Product A 275,000 gallons Product B 100,000 gallons Product C 75000 gallons Product d 50,000 gallons the joint cost of purchasing and processing the crude vegtable oil were 105,000. sunny had no begining or ending inventoryes. sales of product c in december were 45,000 products A, B, and D, were further refined then sold. data related to December are as follows : | Separable Processing Costs | |
to Make Super Products | Revenues | |
Super A | $240,000 | $375,000 |
Super B | 60,000 | 150,000 |
Super D | 45,000 | 75,000 |
sunny had the option of selling products a, b and d at the split-off point. this alternative would have yielded the following revenues for the December production:
product A- 75,000
Product B - 62,500
Product D- 67,500
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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