After allocating the joint process costs to its two joint products, Waterway Co. reports gross margin percentages and 35% for Product B. Sales reported for each product were $23,000 for Product A and $65,000 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. Product A Allocated joint costs $ 17,250 $ Product B 42.250 Assuming Waterway 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 71,01 %

After allocating the joint process costs to its two joint products, Waterway Co. reports gross margin percentages and 35% for Product B. Sales reported for each product were $23,000 for Product A and $65,000 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. Product A Allocated joint costs $ 17,250 $ Product B 42.250 Assuming Waterway 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 71,01 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

After allocating the joint process costs to its two joint products, Waterway Co. reports gross margin percentages of 25% for Product A
and 35% for Product B. Sales reported for each product were $23,000 for Product A and $65,000 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.
Product A
Allocated joint costs
$
17,250
Product B
42.250
Assuming Waterway 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
71.01
%

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