home-study-business-accounting-questions-and-answers-fremont-industries-makes-th

REQUIRED: SHOW WORK (round to nearest dollar if necessary)

1. Using the sales value at split-off point method, allocate the joint costs to X, Y, and Z.

2. Using the net realizable at split-off point method, allocate the joint costs to X, Y, and Z.

3. Using the constant gross margin percentage method, allocate the joint costs to the three main products.

4. If Fremont had a choice between selling at split-off point or producing each product further, which option would the company choose if the company was trying to maximize profits? Indicate whether each product would be (1) sold at split-off point; (2) processed further or (3) it makes no difference.

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