Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls. Required: 1. gross profit for Brights assuming the physical units method is used? 2. gross profit for Brights assuming the net realizable value method is used? 3. what is the amount of joint costs allocated to Dulls using the physical units method?
Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls. Required: 1. gross profit for Brights assuming the physical units method is used? 2. gross profit for Brights assuming the net realizable value method is used? 3. what is the amount of joint costs allocated to Dulls using the physical units method?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 4CMA: Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in...
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Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls.
Required:
1. gross profit for Brights assuming the physical units method is used?
2. gross profit for Brights assuming the net realizable value method is used?
1. gross profit for Brights assuming the physical units method is used?
2. gross profit for Brights assuming the net realizable value method is used?
3. what is the amount of joint costs allocated to Dulls using the physical units method?
4. What is the amount of joint costs allocated to Dulls using the constant gross margin percentage method?
5. What is the gross profit for Dulls assuming the constant gross margin percentage method is used?
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