Karen is tasked with helping her supervisor decide which method to use when accounting for their company’s by-product and two main products, all three of which result from a joint process. At the end of the joint process, the by-product is worth $1,000, Product T is worth $8,241, and Product W is worth $11,859. The joint costs amount to $5,400. Karen’s company historically uses the sales value at split-off method to allocate joint costs. 

If all of these products are sold by the end of the year, how much gross margin will Karen report for her company if she uses the production method to account for by-products?

Answer rating: 100% (QA)

SOLUTION Byproduct value 1000 Product T value 8241 Product W value 11859 Total product values 1000 8... View the full answer