Reference no: EM132655751
Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows:
Product - Units Produced - Final SalesValue per Unit - Separable Costs
A - 10,000 - $25 - $125,000
B - 15,000 - 30 - 250,000
C - 12,500 - 24 - 125,000
REQUIREMENTS
Question A. Determine the amount of joint cost allocated to each product if the NRV method is used
Question B. determine the amount of joint costs allocated to each product if the physical output method is used
Question C. There is a new process that could convert Product A into Super A. Super A sells for $40 per unit. The additional costs of Super A are $170000. Should Calamata start producing Super A- why or why not?