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Calamata Corporation Processes a Single Material into Three Separate Products

Question 104

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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 15,00030250,000 C 12,50024125,000\begin{array} { | c | c | c | c | } \hline \text { Product } & \text { Units Produced } & \begin{array} { c } \text { Final Sales } \\\text { Value per Unit }\end{array} & \begin{array} { c } \text { Separable } \\\text { Costs }\end{array} \\\hline \text { A } & 10,000 & \$ 25 & \$ 125,000 \\\hline \text { B } & 15,000 & 30 & 250,000 \\\hline \text { C } & 12,500 & 24 & 125,000 \\\hline\end{array} 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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The gross margin per...

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