Part 1 & 2 is correct but part 3 numbers is not correct.

Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, Ten, Triol, and Proze, from a joint process. Each production run costs $13,000. None of the products can be sold at split of but must be processed further Information on one batch of the three products is as follows: Eventual Market Price per Gallon Product Further Processing Cost per Gallon $0.50 Gallons L-Ten 3,600 $2.00 Triol 5.00 1.00 4,000 Ploze 6.00 2,600 1.50 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. Total Revenue 42,800 Total Costs 22,700 Total Gross Profit 20,100 2. Allocate the joint cost to L-Ten, Triol, 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 2,019 Triol 6,608 Ploze 4,374 inur Next 2. Allocate the Joint cost to L-Ten, Triol, 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 2,019 Triol 6,608 Pioze 4,374 Total 13,001 (Note: The joint cost allocation does not equal due to rounding.) 3. What if it cost $2.00 to process each gallon of Triol beyond the split-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 2,692 Triol 4,477 Pioze 5,832 Total 13,001 (Note: The joint cost allocation does not equal due to rounding.) Previous Next