Question 2 Using the Constant Gross Margin Percentage Method for Allocating Joint Costs Green Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows: Sales Value at Kilograms Produced Split off Point Separable Costs 130,000 Product Paper Cardboard $80,000 $224,000 108,000 70,000 264,000 Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram. There were no beginning inventories for April but ending inventories totalled 10,000 kilograms for paper and 12,000 kilograms for cardboard. Required: Prepare a product line income statement assuming that joint costs are allocated based on the constant gross margin percentage method