Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint c...

Question

Question

Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint c...

Constant gross margin percentage NRV method applies the following steps:

a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint costs

b) 1) compute overall sales value; 2) compute total production cost for each product; 3) compute allocated joint costs

c) 1) COMPUTE OVERALL NRV; 2) compute total production costs for each product 3) compute allocated joint costs

d) none of these

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The constant gross-margin percentage NRV method allocates joint costs to joint products produced during the accounting period in such a way that each individual product achieves an identical gross-margin percentage. The method works backwards in that the overall gross margin is computed first.

The three steps are:

Compute the overall gross margin percentage
Compute the total production costs for each product
Compute the allocated joint costs.

The answer is thus a)

Add a comment

Answer 2

Similar Homework Help Questions

Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin...

Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint costs b) 1) compute overall sales value; 2) compute total production cost for each product; 3) compute allocated joint costs c) 1) COMPUTE OVERALL NRV; 2) compute total production costs for each product 3) compute allocated joint costs d) none of these
Question 2 Using the Constant Gross Margin Percentage Method for Allocating Joint Costs Green Paper Company...

Question 2 Using the Constant Gross Margin Percentage Method for Allocating Joint Costs Green Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows: Sales Value at Kilograms Produced Split off Point Separable Costs 130,000 Product Paper Cardboard $80,000 $224,000 108,000 70,000 264,000 Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram. There were no beginning inventories for...
REQUIREMENTS A. Determine the amount of joint cost allocated to each product if the NRV method...

REQUIREMENTS A. Determine the amount of joint cost allocated to each product if the NRV method is used B. determine the amount of joint costs allocated to each product if the physical output method is used C. There is a new process that could convert Product A into Super A. Super A sells for $40 per unit. The additional costs of Super A are $170000. Should Calamata start producing Super A- why or why not? PLEASE SHOW UR WORK Calamata...

Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L. Ten,...

Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L. Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split off, but must be processed further. Information on one batch of the three products is as follows: Product Gallons Further Processing Cost per Gallon $0.50 Eventual Market Price per Gallon L-Ten $2.00 Triol 3,700 4,000 2,300 1.00 5.00 Pioze 1.50 6.00 Required: 1....
Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol,...

Allocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Gallons Further Processing Cost per Gallon Eventual Market Price per Gallon L-Ten 3,500 $0.50 $ 2.00 Triol 4,000 1.00 5.00 Pioze 2,500...
Please show the steps The following information relates to a joint production process for three products,...

Please show the steps The following information relates to a joint production process for three products, with a total joint production cost of $170,000. There are no separable processing costs for any of the three products. Sales Value Units at Product at Split-Off Split-Off 1 $ 204,000 495 85,000 1,155 3 51,000 1,650 $ 340,000 3,300 Brief Exercise 7-20 [LO 7-6] Assume that the total sales value at the split-off point for product 1 is $85,000 instead of $204,000 and...

The following information relates to a joint production process for three products, with a total joint...

The following information relates to a joint production process for three products, with a total joint production cost of $155,000. There are no separable processing costs for any of the three products. Product/ Sales Value of split off Units at Split-Off 1 $ 217,000 450 2 46,500 1,050 3 46,500 1,500 $ 310,000 3,000 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method? P1: %, P2: %, P3:...
The following information relates to a joint production process for three products, with a total joint...

The following information relates to a joint production process for three products, with a total joint production cost of $135,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off $189,000 54,000 27,000 $270,000 Units at Split-Off 260 780 1,560 2,600 What percentage of joint cost is allocated to each of the three products using the physical units method? Product Percent of Sales Units 1 3
The following information relates to a joint production process for three products, with a total joint...

The following information relates to a joint production process for three products, with a total joint production cost of $100,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 130,000 240 2 50,000 960 3 20,000 1,200 $ 200,000 2,400 What percentage of joint cost is allocated to each of the three products using the physical units method?

b. Now allocate the joint cost to the cookies and the Soyola using the NRV method....

b. Now allocate the joint cost to the cookies and the Soyola using the NRV method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Cookies Soyola Total Final sales value of total production Deduct separable costs Net realizable value Weighting Joint costs allocated Requirement 2. Should ISP have processed each of the products further? What effect does the allocation method have on this decision? Begin by calculating the profit or loss that would occur...

Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint c...

Homework Answers

Add Answer to:
Constant gross margin percentage NRV method applies the following steps: a) 1) compute overall gross margin percentage; 2) compute total production costs for each product; 3) compute allocated joint c...

Post as a guest

Earn Coins