Stulce Inc. produces joint products A, B, and C from a joint process. Information concerning a batch produced in May at a joint cost of $120,000 was as follows: Required(calculate all ratios, percentages, and unit costs to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):
1. Allocate the joint costs to the joint products using the physical measures method.
2. Calculate the gross margin for each of the three products using the cost allocation for the physical unit method in part (1) above.
3. Allocate the joint costs to the joint products using the net realizable method.
4. Calculate the gross margin for each of the three products using the cost allocation for the net realizable value method in part (3) above.

Question

Stulce Inc. produces joint products A, B, and C from a joint process. Information concerning a batch produced in May at a joint cost of $120,000 was as follows:  Required(calculate all ratios, percentages, and unit costs to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):
1. Allocate the joint costs to the joint products using the physical measures method.
2. Calculate the gross margin for each of the three products using the cost allocation for the physical unit method in part (1) above.
3. Allocate the joint costs to the joint products using the net realizable method.
4. Calculate the gross margin for each of the three products using the cost allocation for the net realizable value method in part (3) above.

Quizplus · Accepted Answer

The Answer of Stulce Inc. produces joint products A, B, and C from a joint process. Information concerning a batch produced in May at a joint cost of $120,000 was as follows:  Required(calculate all ratios, percentages, and unit costs to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):
1. Allocate the joint costs to the joint products using the physical measures method.
2. Calculate the gross margin for each of the three products using the cost allocation for the physical unit method in part (1) above.
3. Allocate the joint costs to the joint products using the net realizable method.
4. Calculate the gross margin for each of the three products using the cost allocation for the net realizable value method in part (3) above.