Jarvis Manufacturing produces three products in a joint operation. Information regarding the products appears below:

Alpha

Beta

Gamma

Total

Unit produced

$ 20,000

$ 25,000

$ 10,000

$ 55,000

Sales value at split-off

$ 150,000

$ 50,000

$ 20,000

$ 220,000

Additional costs if processed further

$ 10,000

$ 30,000

$ 5,000

$ 45,000

Sales value if processed further

$ 170,000

$ 90,000

$ 28,000

$ 288,000

Joint Costs

$ 100,000

Required:

(a) Allocate the joint costs using the relative sales value at split-off method.

(b) Allocate the joint costs using the constant gross margin percentage method.

Answer rating: 100% (QA)

Jarvis Manufacturing Joint Cost Allocation Were given information about three products AlphaBetaand Gamma produced in a joint operation and need to al... View the full answer