Use Constant - Margin Percentage NRV Method to allocate Joint cost to each product (use Table) Thecompany has the following information: Total Final Sale Value $1,600,000 Total Joint and SeparableCosts $1,200,000 Gross Margin $ 400,000. Groos Margin % 25% Main Product A Main Product BTotal Final sales value of total production $500,000 $1,100,000 $1,600,000 Gross Margin (%) GrossMargin $ $400,000 Total Costs $ $ Separable Costs $280,000 $520,000 $800,000 Joint Cost? Whatamount of joint cost should beallocated to Product 1 and to product 2

The Constant Gross-Margin Percentage NRV Method is an method for determining price of the products…

Answered: Margin $ $400,000 Total Costs $ $…

Margin $ $400,000 Total Costs $ $ Separable Costs $280,000 $520,000 $800,000 Joint Cost? What amount of joint cost should beallocated to Product 1 and to product 2

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

Use Constant - Margin Percentage NRV Method to allocate Joint cost to each product (use Table) The
company has the following information: Total Final Sale Value $1,600,000 Total Joint and Separable
Costs $1,200,000 Gross Margin $ 400,000. Groos Margin % 25% Main Product A Main Product B
Total Final sales value of total production $500,000 $1,100,000 $1,600,000 Gross Margin (%) Gross
Margin $ $400,000 Total Costs $ $ Separable Costs $280,000 $520,000 $800,000 Joint Cost? What
amount of joint cost should beallocated to Product 1 and to product 2

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Step 2: Prepare table showing allocation of joint cost between Main product A and Main product B

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