Question: E 1 5 . 4 ( LO 2 ) , AN Josie is looking back at her work from last year, wistorically used the NRV
ELO AN Josie is looking back at her work from last year, wistorically used the NRV method to allocate
cess costs to its three products. She knows that the company the final allocations and supporting detail is only partially
joint costs. Unfortunately, the printout that she has of the in office last week, and Josie's printout was the
legible. You see, Gerald accidently set the sprinklers of what she could see from the printout; she noted missing
recipient of most of that water. Here is a replica
information with lowercase roman numerals.
Units produced available at splitoff point
Sales value per unit at splitoff point
Units produced available after further processing
Final sales value per unit after further processing
Further processing costs
Allocated joint costs
Required
a Fill in the missing details for each product.
b If Josie's company had instead used the physical quantities method for allocating joint costs, how different
would the allocated costs have been for each product?
c Under the existing NRV method, which product has the highest gross margin percentage assuming all
quantities available after further processing are sold for the given price? If the physical quantities method
is used, which product has the highest gross margin percentage again assuming all quantities avail
able are sold for the given price after further processing Should product preferencepriority decisions be
based on information from either of these methods? Explain your answer.
Anwer question number e
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