Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Ploze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product L-Ten Triol Pioze Total Revenue. Gallons Product 3,500 4,000 2,500 Total Costs Total Gross Profit L-Ten Triol Pioze Further Processing Cost per Gallon Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. $ $0.50 40,800 X 22,400 ✓ 18,700 X 2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost 1.00 $ 1.50 Eventual Market Price per Gallon $ 2.00 Allocation 5.00 2,042 X 6,831 X 6.00 Total $ (Note: The joint cost allocation does not equal $12,900 due to rounding.) 3. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

roduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs:       Fixed costs:     Direct materials $90 per unit     Factory overhead $199,200   Direct labor 31       Selling and admin. exp. 70,300   Factory overhead 23           Selling and admin. exp. 22             Total variable cost per unit $166 per unit       MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a.  Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b.  Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c.  Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…

Y Company produces two joint products: Sweet and Sour.  Joint cost is allocated using the net realizable value method at split-off point.  Joint production cost is $70,000.  Neither product is salable at split-off point.  During May, the additional costs incurred beyond split-off point are as follows:                           Sweet                           $ 32,000                         Sour                             $ 48,000   Production:       Sweet: 3,200 units                                Sour: 1,600 units   Selling prices:    Sweet: $50.00 per unit                          Sour:  $ 90.00 per unit   What is the amount of joint cost allocated to Sweet and Sour using the NRV Method at split-off point. (Must show calculations or no credit)                                                               Joint cost allocated to Sweet:  $_____________________________                                                             Joint cost allocated to Sour:…

Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: Direct materials $67,900 Direct labor 34,000 Overhead 25,500   At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. Required: Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.   Allocated Joint Cost Barlon $   Selene     Plicene     Corsol     Total $   (Note: The total of the allocated cost does not equal actual total costs to rounding.)

Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.     DBB-1 DBB-2 DBB-3 Total Units Sold   16,000     25,000     36,000     77,000   Price (after addt’l processing) $ 30   $ 15   $ 40         Separable Processing cost $ 179,000   $ 72,000   $ 107,000   $ 358,000   Units Produced   16,000     25,000     36,000     77,000   Total Joint Cost                   $ 3,600,000   Sales Price at Split-off $ 20   $ 30   $ 50             The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the…

Division X of Bella Corporation sells Part A to other companies for $87.20 per unit. According to the company's accounting system, the costs to Division X to make a unit of Part A are: O $87.20 per unit O $62.60 per unit O $58.10 per unit O $79.95 per unit O None of the above Direct materials Direct labor $5.80 Variable Division Y of Bella Corporation uses a part much like Part A in one of its products. Division Y can buy this part from an outside supplier for $79.95 per unit. However, Division Y could use Part A instead of the part it purchases from the outside supplier. What is the most Division Y would be willing to pay the Division X for Part A? Question 21 $42.70 manufacturing $9.60 overhead Fixed manufacturing $4.50 overhead

Joint Cost Allocation—Weighted average method Gordon's Smoothie Stand makes three types of smoothies: blueberry lemon, orange swirl, and triple berry. Before all flavors are added, the smoothies go through a joint mixing process that costs a total of $43 per batch. One batch produces 21.75 cups of blueberry lemon smoothies, 29 cups of orange swirl smoothies, and 36.25 cups of triple berry smoothies. In addition, Gordon has studiously noted that the mixing process necessary for triple berry and blueberry lemon smoothies takes twice as long as it does for orange swirl smoothies. Allocate the joint costs of production to each product using the weighted average method. Round your answers to two decimal places.

Joint Cost Allocation—Physical Units Method Board-It, Inc., produces the following types of 2 × 4 × 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of $710 per batch. Using the physical units method, allocate the joint production cost to each product. Round your answers to two decimal places.

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