Ch 7 1. BEX.07.01.ALGO eBook Learning Objective 5 Instant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,700. 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: 2. BEX.07.02.ALGO 3. BEX.07.03.ALGO Further Processing Product Gallons Cost per Gallon Eventual Market Price per Gallon 4. BEX.07.04.ALGO L-Ten 3,700 $0.50 $2.00 5. BEX.07.05.ALGO Triol 4,000 1.00 5.00 6. BEX.07.07.ALGO Pioze 2,300 1.50 6.00 7. BEX.07.08.ALGO 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. 8. BEX.07.09.ALGO 9. BEX.07.10.ALGO 10. BEX.07.11.ALGO Total Revenue Total Costs $ 41,200 ✔ $ 22,000 ✓ - 19,200 ✓ Total Gross Profit 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. Product L-Ten Triol Joint Cost Allocation 2,102 v 6,680 Pioze Total 3,919 ✔ $ 12,701 ✔ (Note: The joint cost allocation does not equal due to rounding.) 3. What if it cost $2.00 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. Joint Cost Allocation Product L-Ten Triol Pioze Total $ 880 X 620 x 1,642.2 x ક (Note: The joint cost allocation does not equal due to rounding.) Feedback ▼ Check My Work 1. The constant gross margin percentage method used to avoid assuming that all profit occurs at the split-off point. allocates joint cost to ensure that the same gross profit is applicable to all products. 2. Remember that the gross margin percentage is a function of revenues. 3. To show what would happen if the cost changed, see Example 7.11. Check My Work Progress: 10/10 items

eBook Joint Cost Allocation-Net Realizable Value Method Pure lemonade Show Me How Strawberry lemonade Raspberry lemonade Lily's Lemonade Stand makes three types of lemonade: pure, raspberry, and strawberry. The lemonade is produced through a joint mixing process that costs a total of $30 per batch. One batch produces 32 cups of pure lemonade, 21 cups of strawberry lemonade, and 21 cups of raspberry lemonade. After the split-off point, all three lemonades can be sold for $0.80 per cup, but strawberry and raspberry lemonade can be processed further by adding artificial coloring and flavoring and sold for $0.95 and $1.00 per cup, respectively. It is estimated that these additional processing costs are $0.75 and $1.80 per batch for strawberry and raspberry lemonade, respectively. Allocate the joint costs of production to each product using the net realizable value method. Joint Product Totals Allocation cator=&inprogress=false Check My Work 2 more Check My Work uses remaining. I B Updat…

Problem: Module 6 Textbook Problem 6 Learning Objective: 6-3 Make appropriate outsourcing decisions Perez Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9.200 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $5,400 6,800 4,100 9,600 27,900 "One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Perez for $2.80 each.. Required a. Calculate the total relevant cost. Should Perez continue to make the containers? b. Perez could lease the space it currently uses in the manufacturing process. If leasing would produce $11,700 per month, calculate the total avoidable costs. Should Perez continue to make the containers? a Total relevant cost Should Perez continue to make the containers? b. Total avoidable cost Should Perez continue to make the…

I want to know how to do those last two, please!