RKH Corporation Produces Three Joint Products Using the Constant Gross Margin NRV Method, the Total Joint

question 56

Multiple Choice

RKH Corporation produces three joint products. During a recent accounting period, joint costs totalled $365 and RKH had no beginning inventories. Additional data appear below: $\begin{array}{lrrr}& \underline{\text { M1 }}& \underline{ \text { M2 } }& \underline{\text { M 3}}\\\text { Volume (kilograms) } & 150 & 50 & 300\\\text { Sales value at the split-off point } & \$ 375 & \$ 155 & \$ 600 \\\text { Sales value after further processing } & \$ 450 & \$ 200 & \$ 900 \\\text { Separable costs } & \$ 50 & \$ 35 & \$ 100\end{array}$ 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

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Definitions:

Common Binomial Factor

A binomial that is a factor common to two or more polynomials.

Negative Real Number

A real number that is less than zero.

Standard Form

In mathematics, a way to write numbers using the digits 0-9, with each digit having a place value. In algebra, a standard form of an equation might be ax + by = c.

Greatest Common Monomial Factor

The greatest common monomial factor between two or more monomials is the highest monomial that divides each of the monomials without a remainder.