80.2K

Verified Solution

Link Copied!

Johnston Adhesives Company makes three widely used industrial adhesives A101, A204, and B216. Sales and prociuction information for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blerid 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 alf production required additional separable processing. Totaljoint cost for the three productsis $3.419.000 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 maigin perceritage method. (Do not round intermediate colculations. Round cost per unit onswers to 4 decimal places and gross margin onswers to the neorest whole dollor. Negative amounts should be indicated with o minus sign.) 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. (Do not round intermediate calculotions. Round cost per unit answers to 4 decimal places and gross margin answers to the nearest whole dollar. Negative amounts should be indicated with a minus sign.)

Answer & Explanation Solved by verified expert

See Answer