Allocate the joint manufacturing cost

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Reference no: EM133105152

Question - A joint manufacturing process is used to manufacture 51,000 litres of P57 at a joint cost of $1,838,800. This is further processed into Product A27 and C45.

A27 - 42,000 Litres of P57 is used to manufacture 21,000 litres A27 at a further processing cost of $165,000. A27 sells for $145 per litre.

C45 -  9,000 litres of P57 is used to manufacture 9,000 litres of C45 at further processing cost of $212,000. C45 is sold for $72.00 per litre.

Allocate the joint manufacturing cost using the constant gross margin method.

Reference no: EM133105152

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