Favata Corporation processes a single material into three separate products A, B, and C . During September, the joint costs of processing were $600,000. Production and sales value information for the month were as follows:
Required:
Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.

Question

Favata Corporation processes a single material into three separate products A, B, and C . During September, the joint costs of processing were $600,000. Production and sales value information for the month were as follows:
  Required:
Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.

Quizplus · Accepted Answer

The Answer of Favata Corporation processes a single material into three separate products A, B, and C . During September, the joint costs of processing were $600,000. Production and sales value information for the month were as follows:
  Required:
Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.

Favata Corporation Processes a Single Material into Three Separate Products