Reference no: EM133171787

Question - There is a joint production process with a total of joint costs of € 30,000. Additionally, for the three products A, B, and C, there are separable costs of € 10,000, € 30,000, and € 10,000, respectively. The three products A, B, and C are sold at € 20,000, € 50,000, and € 30,000, respectively. Assume, all products to be joint products and a production volume of 20 tons each.

a) Please allocate the joint costs using the physical measure-based method. Determine the joint costs allocated to product B.

b) Please allocate the joint costs using the sales value at split-off method. Determine the joint costs allocated to product B.

c) Please allocate the joint costs using the estimated net realizable value method. Determine the net realizable value of product B.

d) Please allocate the joint costs using the estimated net realizable value method. Determine the joint costs allocated to product B.

e) Please allocate the joint costs using the constant gross margin method. Determine the gross margin (in percent).

f) Please allocate the joint costs using the constant gross margin method. Determine the joint costs allocated to product B.