Chapter 7 Homework due Sept. 27 3. Summer Inc. produces joint products A, B, and
ID: 2340312 • Letter: C
Question
Chapter 7 Homework due Sept. 27 3. Summer 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: Total Units Sold Price (after additional processing) Separable Processing cost Units Produced Total Joint Cost 2.500 4,821.500 3,223 $35 $22 $15 2. $35,000$12,000 $%16,000 $63,000 2,500 4xxX 1,500,223 $120,000 Sales Price at Split-off $25 $12 $1350 1. Allocate the joint costs to the joint products using the physical measure method. 2. Calculate the gross margin for each of the three products using the cost allocation for the physical measure 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 realiz value method in part (3) aboveExplanation / Answer
Solution 1:
Solution 2:
Solution 3:
Solution 4:
Allocation of Joint Cost - Physical measure method - Summer Inc. Particulars A B C Total Output at split off point 2500 4223 1500 8223 Allocation of Joint Cost (2500:4223:1500) $36,483 $61,627 $21,890 $120,000