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In module assembly, each batch of standard chips is converted into standard memory modules
at a separately identified cost of $1,000 and then sold for $8,500. Each batch of deluxe chips is
converted into deluxe memory modules at a separately identified cost of
REQUIRED
1. Allocate joint costs of each batch to deluxe modules and standard modules using (a) the NRV
method, (b) the constant gross margin percentage NRV method, and (c) the physical measure
method, based on the number of memory bits. Which method should MMC use?
2. MMC can process each batch of 500 standard memory modules to yield 400 DRAM modules
at an additional cost of $1,600. The selling price per DRAM module would be $26.
Assume MMC uses the physical measure method. Should MMC sell the standard memory
modules or the DRAM modules?
ANSWER
https://solvedquest.com/memory-manufacturing-company-mmc-produces-memory-modules-in-a-
two-step/