After allocating the joint process costs to its two joint products, Allomar Co. reports gross margin percentages of 30% for Product A and 40% for Product B. Sales reported for each product were $25,000 for Product A and $60,000 for Product B. Neither of the two products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products. Allocated joint costs $ Product A $ Proportion of joint costs assigned to product B Product B Assuming Allomar used the physical quantities method to allocate the joint costs, what percentage of the total production volume did Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.) %

After allocating the joint process costs to its two joint products, Allomar Co. reports gross margin percentages of 30% for Product A and 40% for Product B. Sales reported for each product were $25,000 for Product A and $60,000 for Product B. Neither of the two products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products. Allocated joint costs $ Product A $ Proportion of joint costs assigned to product B Product B Assuming Allomar used the physical quantities method to allocate the joint costs, what percentage of the total production volume did Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.) %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...

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Question

After allocating the joint process costs to its two joint products, Allomar Co. reports gross margin percentages of 30% for Product A
and 40% for Product B. Sales reported for each product were $25,000 for Product A and $60,000 for Product B. Neither of the two
products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products.
Allocated joint costs
Product A
Product B
Assuming Allomar used the physical quantities method to allocate the joint costs, what percentage of the total production volume did
Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.)
Proportion of joint costs assigned to product B
%

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