Lond Company produces joint products Jana and Reta, and by-product Bynd. Jana is sold at split-off; Reta and Bynd undergo additional processing. Production data pertaining to these products for the year ended December 31, 2013 were as follows: Lond had no beginning or ending inventories and no materials were spoiled in production. Bynd's net realizable value is deducted from joint costs. Joint costs are allocated to joint products to achieve the same gross margin percentage for each joint product.
Required:
Prepare the following information for Lond Company for the year ended December 31, 2013:
1. Total gross margin.
2. Allocation of joint costs to Jana and Reta.
3. Separate gross margins for Jana and Reta.

Question

Lond Company produces joint products Jana and Reta, and by-product Bynd. Jana is sold at split-off; Reta and Bynd undergo additional processing. Production data pertaining to these products for the year ended December 31, 2013 were as follows:  Lond had no beginning or ending inventories and no materials were spoiled in production. Bynd's net realizable value is deducted from joint costs. Joint costs are allocated to joint products to achieve the same gross margin percentage for each joint product.
Required:
Prepare the following information for Lond Company for the year ended December 31, 2013:
1. Total gross margin.
2. Allocation of joint costs to Jana and Reta.
3. Separate gross margins for Jana and Reta.

Quizplus · Accepted Answer

The Answer of Lond Company produces joint products Jana and Reta, and by-product Bynd. Jana is sold at split-off; Reta and Bynd undergo additional processing. Production data pertaining to these products for the year ended December 31, 2013 were as follows:  Lond had no beginning or ending inventories and no materials were spoiled in production. Bynd's net realizable value is deducted from joint costs. Joint costs are allocated to joint products to achieve the same gross margin percentage for each joint product.
Required:
Prepare the following information for Lond Company for the year ended December 31, 2013:
1. Total gross margin.
2. Allocation of joint costs to Jana and Reta.
3. Separate gross margins for Jana and Reta.

Lond Company Produces Joint Products Jana and Reta, and By-Product