Using the constant gross margin percentage method

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Reference no: EM13794599

Darling Manufacturing Inc. manufactures two products, A and B, from a joint process. A single production costs $5,000 and results in 200 units of A and 800 units of B. To be ready for sale, both products must be processed further, incurring seperable costs of $3 per unit for A and $4 per unit for B. The market price for Product A is $15 and for Product B is $10.

Required: Allocate joint production costs to each product using the constant gross margin percentage method. SHOW YOUR WORK!

Reference no: EM13794599

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