Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 16, Problem 16.27P

1.

To determine

To compute: Allocation of joint cost as per NRV method.

Given information:

Joint cost is $150,000.

Gallons of chemical in batch are 2,500 gallons.

Gallons sold for human use are 1,700 gallons

Gallons sold for veterinarian are 300 gallons

Selling price per gallon for gallons sold for human use is $585.

Selling price per gallon for gallons sold for veterinarian is $410.

2.

To determine

To compute: Cost of ending inventory.

3.

To determine

To compute: Allocation of joint cost as per gross margin percentage NRV method.

4.

To determine

To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.

5.

To determine

To examine: Decision to accept or reject project.

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