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: ProductUnits ProducedFinal Sales Value per Unit Separable Costs A10,000$25$125,000 B15,00030250,000 C12,50024125,000 Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used

Step 1: Compute the gross margin percentage.

Answered: Calamata Corporation processes a single…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

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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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