
1.
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 compute: Cost of ending inventory.
3.
To compute: Allocation of joint cost as per gross margin percentage NRV method.
4.
To compute: Gross margin on the sale of product for human use as per constant gross margin percentage NRV method.
5.
To examine: Decision to accept or reject project.

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Chapter 16 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
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