Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and...

70.2K

Verified Solution

Question

Accounting

image

Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston produces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston's customers requested the heat-resistant version of the products so that all production required additional separable processing. Total joint cost for the three products is $3,209,000 B216 A101 201,90e A204 187,000 Gallons sold Final sales price per gallon Price at split-off Separable processing cost 131,000 10 6 $593,000 12 $ $. 480,000 119,000 Required 1. Calculate the unit product cost and total gross margin for each of the three product lines using the following methods: (a) physical measure method, (b) sales value at split-off method, (c) the net realizable value method, and (d) the constant gross margin percentage method. (Round intermediate calculations and cost per unit answers to 4 decimal places. Round your final answers to whole dollar amounts. Negative amounts should be indicated with a minus sign.) A101 A204 B216 a. Physical Measure Method Cost per unit Total gross margin b. Sales Value at Split-Off Method Cost per unit Total gross margin c. Net Realizable Value Method Cost per unit Total gross margin d. Constant Gross Margin Method Cost per unit Total gross margin

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students