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:

Storming Stage

The second phase in the Tuckman's model of team development, characterized by conflict and tension among team members as they assert their views.

Group Members

Individuals who belong to a defined collective or team, sharing common goals, responsibilities, or interests.

Compromise

Compromise is a negotiation strategy where conflicting parties make concessions to reach a mutually acceptable agreement.

Agreed-on Guidelines

Rules or principles that have been accepted by all parties involved, typically meant to guide actions or standardize procedures.