13. Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs A 10,000 $25 $125,000 B 15,000 30 250,000 C 12,500 24 125,000 Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.
13. Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs A 10,000 $25 $125,000 B 15,000 30 250,000 C 12,500 24 125,000 Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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13. Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows:
Product |
Units Produced |
Final Sales Value per Unit |
Separable Costs |
A |
10,000 |
$25 |
$125,000 |
B |
15,000 |
30 |
250,000 |
C |
12,500 |
24 |
125,000 |
Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.
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