Allocating Joint Costs Using the Constant Gross Margin Method

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows:

Required:

1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.

2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

(Note: The joint cost allocation does not equal $12,900 due to rounding.)

3. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

(Note: The joint cost allocation does not equal $12,900 due to rounding.)

Allocating Joint Costs Using the Constant Gross Margin Method

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows:

Required:

1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.

2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

(Note: The joint cost allocation does not equal $12,900 due to rounding.)

3. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

(Note: The joint cost allocation does not equal $12,900 due to rounding.)

1. Allocating Joint Costs Using the Constant Gross Margin Method

   A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,700. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows:

   Product	Gallons	Further Processing Cost per Gallon	Eventual Market Price per Gallon
   L-Ten	3,400	$0.50	$2.00
   Triol	4,000	1.00	5.00
   Pioze	2,600	1.50	6.00

   Required:

   1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.

   Total Revenue	$
   Total Costs	$
   Total Gross Profit	$

   2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

   	Joint Cost
   Product	Allocation
   L-Ten	$
   Triol
   Pioze
   Total	$

   (Note: The joint cost allocation does not equal due to rounding.)

   3. What if it cost $2.00 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

   	Joint Cost
   Product	Allocation
   L-Ten	$
   Triol
   Pioze
   Total	$

   (Note: The joint cost allocation does not equal due to rounding.)

Check My Work

Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.)

Which ASTM cement(Type 1-Type 5) is most appropriate for the following construction applications? What types of mineral and/or chemical admixtures could be used for each application? Give detailed reasons for your choices.

• Construction of a bridge pier in the sea.

Which ASTM (type 1-5) cement is most appropriate for the following construction applications? What types of mineral and/or chemical admixtures could be used for each application? Give reasons for your choices: Construction of a transfer plate with a thickness of 2 metres.

this is regarding a construction safety course under the civil engineering department, looking forward for your response and example thanks.

Q2. What elements of OSHA guidelines on workplace violence can be adapted for use in construction companies? Enlist and explain those elements?

1) Suppose that a company has fixed costs of $15 per unit and variable costs $11 per unit when 15,500 units are produced. What are the fixed costs per unit when 11,000 units are produced?

2)Total costs for ABC Distributing are $240,000 when the activity level is 9,000 units. If variable costs are $3.0 per unit, what are their fixed costs?

3)Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $750,000 in service revenue. Their total cost (fixed and variable) per client was $2,650 and they served 105 clients during the year. If operating expenses for the year were $300,000 what was their net income?

4)

Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production.

If 20,500 units are produced, what are the total manufacturing overhead costs incurred?

Cheap Stay Inc. is considering building a budget hotel that offers clean small rooms with bathrooms. They anticipate that the 120 rooms will rent for 36,000 room-nights per year. The market price for equivalent rooms is $60 per night. Cheap Stay estimates that the cost of capital will be $7,900,000 and they would like an annual return on 15%. Following are the estimated annual operating costs:

Variable operating costs $18 per room night

Fixed Costs:

Salaries and wages $450,000

Building maintenance 86,000

General administration 230,000

Total fixed costs $766,000

REQUIRED:

1. What is the full cost per room-night?

2. Can Cheap Stay Inc. meet the targeted return on investment based on the estimated costs and revenue? Show your calculations.

3. A tour operator has offered $30 per room per night for 20 rooms during a time of the year that there is likely to be at least that many rooms vacant. Should Cheap Stay Inc. accept this offer?