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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.
How does Balance Sheet, Net Income Statement, Cash Flow Statement be connected with each other and How can we used them separatel
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