Calamata Corporation Processes a Single Material into Three Separate Products

question 70

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:
$$\begin{array} { | c | c | c | c | } \hline \text { Product } & \text { Units Produced } & \begin{array} { c } \text { Final Sales } \\\text { Value per Unit }\end{array} & \begin{array} { c } \text { Separable } \\\text { Costs }\end{array} \\\hline \text { A } & 10,000 & \$ 25 & \$ 125,000 \\\hline \text { B } & 15,000 & 30 & 250,000 \\\hline \text { C } & 12,500 & 24 & 125,000 \\\hline\end{array}$$ Required:
Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.

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Definitions:

Spirit

In Hegel, the all-embracing idea that includes the entire universe and all of humanity. More generally, spirit means enthusiasm (as in “team spirit” or “when the spirit moves me”); in religion, spirit usually refers to an intangible being, such as God or, sometimes, the human soul.

Nirvana

In Buddhism, it refers to an exalted condition where there is an absence of pain, craving, or self-identity, and the individual is liberated from karma's influence and the continual cycle of mortality and rebirth.

Meaning

The significance, definition, or explanation of a word, concept, or symbol, often related to how it is understood in context.

Tantalus

A figure in Greek mythology who was punished in the afterlife by being made to stand in water that receded when he tried to drink and under a tree whose fruit always eluded his grasp.