Stulce Inc

question 48

Essay

Stulce Inc.produces joint products A, B, and C from a joint process.Information concerning a batch produced in May at a joint cost of $120,000 was as follows: Required(calculate all ratios, percentages, and unit costs to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):
1.Allocate the joint costs to the joint products using the physical measures method.
2.Calculate the gross margin for each of the three products using the cost allocation for the physical unit method in part (1) above.
3.Allocate the joint costs to the joint products using the net realizable method.
4.Calculate the gross margin for each of the three products using the cost allocation for the net realizable value method in part (3) above.

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Definitions:

Freight In

A cost associated with transporting goods into a business, often included in the cost of goods sold because it directly relates to the cost of bringing inventory to the business.

Contra Account

An account used in the general ledger to reduce the value of a related account without adjusting the original account directly.

Sales Returns

Transactions where customers return previously purchased merchandise, resulting in a refund or credit.

Accumulated Depreciation

represents the total amount of depreciation expense that has been recorded for an asset since it was acquired.