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Conviser Tools manufactures two products from the same raw material. Joint processing costs total $10,000. Product X could be sold at the split-off point for $18,000 ($20 per unit for 900 units) and Product Y for $12,000 ($10 per unit for 1,200 units). Calculate the gross margins at the split-off point. Revenue Allocated joint cost Gross margin Answer: A: $ B: $ C: $ D: $ X $18,000 A C Y $12,000 B D

Conviser Tools manufactures two products from the same raw material. Joint processing costs total $10,000. Product X could be sold at the split-off point for $18,000 ($20 per unit for 900 units) and Product Y for $12,000 ($10 per unit for 1,200 units). Calculate the gross margins at the split-off point. Revenue Allocated joint cost Gross margin Answer: A: $ B: $ C: $ D: $ X $18,000 A C Y $12,000 B D

FINANCIAL ACCOUNTING
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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Conviser Tools manufactures two products from the same raw material. Joint processing costs total $10,000. Product X could be sold at the split-off point for $18,000 ($20 per unit for 900 units) and Product Y for $12,000 ($10 per unit for 1,200 units). Calculate the gross margins at the split-off point. Revenue Allocated joint cost Gross margin Answer: A: $ B: $ C: $ D: $ X $18,000 A C Y $12,000 B D
Transcribed Image Text:Conviser Tools manufactures two products from the same raw material. Joint processing costs total $10,000. Product X could be sold at the split-off point for $18,000 ($20 per unit for 900 units) and Product Y for $12,000 ($10 per unit for 1,200 units). Calculate the gross margins at the split-off point. Revenue Allocated joint cost Gross margin Answer: A: $ B: $ C: $ D: $ X $18,000 A C Y $12,000 B D
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