EXERCISE 1: SALES VALUE @ SPLIT-OFF METHOD

MV @ Split-off Point Joint Costs Allocated

Electric Percolators 300,000.00 150,000.00
Stovetop Percolators 150,000.00 75,000.00
Replacement Parts 50,000.00 25,000.00
500,000.00 250,000.00 Given
EXERCISE 2: PHYSICAL MEASURES METHOD
NOTE: ALWAYS USE THE PRODUCED, IF NON, USE THE BEGINNING AND SOLD, IF NO SOLD=STILL ALLOC

Produced Joint Cost Allocation

Mild 100,000.00 370000
Original 250,000.00 925000
Extra Spicy 150,000.00 555000
500,000.00 1,850,000.00
SOLD=STILL ALLOCATE
EXERCISE 3: NRV METHOD

Produced NRV/can NRV Joint Cost Allocation

Mild 800,000.00 91.50 73,200,000.00 347766
Original 2,000,000.00 97.50 195,000,000.00 926425
Extra Spicy 1,200,000.00 101.00 121,200,000.00 575809
4,000,000.00 389,400,000.00 1,850,000.00
1,850,000.00
EXERCISE 4: CONSTANT GROSS MARGIN PERCENTAGE METHOD

A B C
Sales 1,000,000.00 2,000,000.00 700,000.00
Less: Joint Cost 50,000.00 850,000.00 350,000.00
Less: FPC/SC 750,000.00 750,000.00 210,000.00
GM/GP 200,000.00 400,000.00 140,000.00
TOTAL PRODUCT COST
3,700,000.00
1,250,000.00
TOTAL PRODUCT COST
1,710,000.00
740,000.00 20.00% GP%
EXERCISE 5: SALES-TO-PRODUCTION METHOD

SEE HANDOUTS SOLUTION IS ALREADY ENCODED THERE :)

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