RKH Corporation produces three joint products. During a recent accounting period, joint costs totalled $365 and RKH had no beginning inventories. Additional data appear below:
M1 M2 M3
Volume (kilograms) 150 50 300
Sales value at the split-off point $375 $155 $600
Sales value after further processing $450 $200 $900
Separable costs $50 $35 $100
Using the constant gross margin NRV method, the total separable costs allocated to the three products will be:
A) $0
B) $185
C) $365
D) $550

Question

Quizplus · Accepted Answer

The Answer of RKH Corporation produces three joint products. During a recent accounting period, joint costs totalled $365 and RKH had no beginning inventories. Additional data appear below:
M1 M2 M3
Volume (kilograms) 150 50 300
Sales value at the split-off point $375 $155 $600
Sales value after further processing $450 $200 $900
Separable costs $50 $35 $100
Using the constant gross margin NRV method, the total separable costs allocated to the three products will be:
A) $0
B) $185
C) $365
D) $550

RKH Corporation Produces Three Joint Products