Calla Corporation processes a single material into three separate products A, B, and C.  During September, the joint costs of processing were P300,000.  Production and sales value information for the month were as follows:   Product Units Produced Final Sales Value per Unit  Separable Costs              A 10,000 P25 P125,000              B 15,000  30   250,000              C 12,500  24   125,000   Required: Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.

Question

Calla Corporation processes a single material into three separate products A, B, and C.  During September, the joint costs of processing were P300,000.  Production and sales value information for the month were as follows:

 

Product

Units Produced

Final Sales Value per Unit

 Separable Costs

             A

10,000

P25

P125,000

             B

15,000

 30

  250,000

             C

12,500

 24

  125,000

 

Required:

Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.

 

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