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O for a standard production run that generates 80,000 O per pound whereas B sells for $5.00 per pound. If ado $2.00 per pound for A and $1.00 per pound for B, the to A using the constant gross-margin porcentago NRV

O for a standard production run that generates 80,000 O per pound whereas B sells for $5.00 per pound. If ado $2.00 per pound for A and $1.00 per pound for B, the to A using the constant gross-margin porcentago NRV

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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XYZ Corporation manufactures two products out of a joint process-A and B. The joint costs incurred are $197,000 for a standard production run that generates 80,000 pounds of A and 20,000 pounds of B. A can sell for $6.00 per pound whereas B sells for $5.00 per pound. If additional processing costs beyond the splitoff point are $2.00 per pound for A and $1.00 per pound for B, the amount of joint cost of each production run allocated to A using the constant gross-margin percentage NRV method is: $152,000. $312,000. $65,000. $45,000.
Transcribed Image Text:XYZ Corporation manufactures two products out of a joint process-A and B. The joint costs incurred are $197,000 for a standard production run that generates 80,000 pounds of A and 20,000 pounds of B. A can sell for $6.00 per pound whereas B sells for $5.00 per pound. If additional processing costs beyond the splitoff point are $2.00 per pound for A and $1.00 per pound for B, the amount of joint cost of each production run allocated to A using the constant gross-margin percentage NRV method is: $152,000. $312,000. $65,000. $45,000.
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