Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in...

 

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Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000, which are allocated based on the number of pounds produced. Туре of Number of Price per pound Total further Price after powder pounds at split-off processing costs processing further Talcom 10,000 $10 $25,000 $12.0 Baby 20,000 $8 $12,000 $9.0 Regular 50,000 $5 $30,000 $5.5 If Regular is processed further, the gross margin that will appear in a product line income statement for Regular would be: $120.000 O $150.000 O $125.000 $245,000 Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000, which are allocated based on the number of pounds produced. Туре of Number of Price per pound Total further Price after powder pounds at split-off processing costs processing further Talcom 10,000 $10 $25,000 $12.0 Baby 20,000 $8 $12,000 $9.0 Regular 50,000 $5 $30,000 $5.5 If Regular is processed further, the gross margin that will appear in a product line income statement for Regular would be: $120.000 O $150.000 O $125.000 $245,000

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ANSWER A 120000 JOINT COST ALLOCATION BASED ON NUMBER OF POUNDS P... View the full answer