Calamata Corporation Processes a Single Material into Three Separate Products

question 134

Essay

Calamata Corporation processes a single material into three separate products A,B,and C.During September,the joint costs of processing were $300,000.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 of NRV method is used.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or service provision.

Scenario Analysis

A method of evaluating potential future events through examining different possible scenarios.

Optimistic Situation

A scenario or condition where outcomes are expected to be favorable or the best possible.

Pessimistic Situation

A scenario or outlook where the worst possible outcomes are anticipated, often used in risk management or scenario planning.