Harrow Labs produces a drug used for the treatment of arthritis. The drug is produced in batches.i (Click the icon to view additional information.)In March, Harrow, which had no opening inventory, processed one batch of chemicals. It sold 1,500 gallons of product for human use and 400 gallons of the veterinarian product. Harrow uses the net realizable value method forallocating joint production costs.Read the requirements.Requirement 1. How much in joint costs does Harrow allocate to each product? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.)Joint costs allocated to human productJoint costs allocated to veterinarian productRequirements1. How much in joint costs does Harrow allocate to each product?2. Compute the cost of ending inventory for each of Harrow's products.3. If Harrow were to use the constant gross-margin percentage NRVmethod instead, how would it allocate its joint costs?4. Calculate the gross margin on the sale of the product for human use in Marchunder the constant gross-margin percentage NRV method.C5. Suppose that the separation process also yields 260 pints of a toxicbyproduct. Harrow currently pays a hauling company $6,100 to dispose of thisbyproduct. Harrow is contacted by a firm interested in purchasing a modifiedform of this byproduct for a total price of $7,300. Harrow estimates that it willcost about $40 per pint to do the required modification. Should Harrow acceptthe offer?XMore infoChemicals costing $45,000 are mixed and heated, then a unique separationprocess then extracts the drug from the mixture. A batch yields a total of 3,600gallons of the chemicals. The first 3,000 gallons are sold for human use while thelast 600 gallons, which contain impurities, are sold to veterinarians. The costsof mixing, heating, and extracting the drug amount to $649,200 per batch. Theoutput sold for human use is pasteurized at a total cost of $168,000 and is sold for$630 per gallon. The product sold to veterinarians is irradiated at a cost of $19 pergallon and is sold for $490 per gallon.PrintDoneX

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Harrow Labs produces a drug used for the treatment of arthritis. The drug is produced in batches. i (Click the icon to view additional information.) In March, Harrow, which had no opening inventory, processed one batch of chemicals. It sold 1,500 gallons of product for human use and 400 gallons of the veterinarian product. Harrow uses the net realizable value method for allocating joint production costs. Read the requirements.

Harrow Labs produces a drug used for the treatment of arthritis. The drug is produced in batches. i (Click the icon to view additional information.) In March, Harrow, which had no opening inventory, processed one batch of chemicals. It sold 1,500 gallons of product for human use and 400 gallons of the veterinarian product. Harrow uses the net realizable value method for allocating joint production costs. Read the requirements.

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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