Use the following information for the next 8 questions.
RKH Corporation produces three joint products. During a recent accounting period, joint costs totaled $365 and RKH had no beginning inventories. Additional data appear below:
-Using the constant gross margin NRV method, the total joint costs allocated to the three products will be
A) $0
B) $185
C) $365
D) $550

Question

Use the following information for the next 8 questions.
RKH Corporation produces three joint products. During a recent accounting period, joint costs totaled $365 and RKH had no beginning inventories. Additional data appear below: 
-Using the constant gross margin NRV method, the total joint costs allocated to the three products will be
A) $0 
B) $185 
C) $365 
D) $550

Quizplus · Accepted Answer

The constant gross margin NRV method allocates joint costs based on the net realizable value of each product, ensuring that the total joint costs allocated equal the total joint costs incurred, which is $365 in this case.

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