answer in text form please (without image) Question 2Using the Constant Gross Margin Percentage Method for Allocating Joint CostsGreen Paper Company processes wood pulp into two products. During January thejoint costs of processing were $144,000. Production and sales value information for themonth were as follows:Sales Value atProduct Kilograms Produced Split off Point Separable CostsPaper130,000$80,000$224,000Cardboard108,00070,000264,000Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram.There were no beginning inventories for April but ending inventories totalled 10,000kilograms for paper and 12,000 kilograms for cardboard.Required:Prepare a product line income statement assuming that joint costs are allocated basedon the constant gross margin percentage method.

The constant gross profit margin is computed by deducting the total joint cost and separable cost…

Question 2 Using the Constant Gross Margin Percentage Method for Allocating Joint Costs Green Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows: Sales Value at Product Kilograms Produced Split off Point Separable Costs Paper $80,000 Cardboard 70,000 $224,000 264,000 130,000 108,000 Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram. There were no beginning inventories for April but ending inventories totalled 10,000 kilograms for paper and 12,000 kilograms for cardboard. Required: Prepare a product line income statement assuming that joint costs are allocated based on the constant gross margin percentage method.

Question 2 Using the Constant Gross Margin Percentage Method for Allocating Joint Costs Green Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows: Sales Value at Product Kilograms Produced Split off Point Separable Costs Paper $80,000 Cardboard 70,000 $224,000 264,000 130,000 108,000 Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram. There were no beginning inventories for April but ending inventories totalled 10,000 kilograms for paper and 12,000 kilograms for cardboard. Required: Prepare a product line income statement assuming that joint costs are allocated based on the constant gross margin percentage method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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