Please do not give solution in image format thanku Assuming again that all quantities are sold, calculate gross margin for the division if Grade 2 is further processed into Grade 3 andthe NRV method is used to allocate joint cosGross margin$Grade 1$Grade 2/3 As the manager of the granite-crushing division, George has just recently started evaluating product profitability. The joint process forhis division generates Grade 1 and Grade 2 granite pieces. Both grades at this point can be sold as-is, or Grade 2 can be processedfurther into Grade 3 (a stabilizer is added while it's further processed into very fine pieces). The quantities, costs, and sales values forthe different grades of product are as follows.Joint processing costsQuantity of Grade 1 product at split-offQuantity of Grade 2 product at split-offSales value of Grade 1 at split-offSales value of Grade 2 at split-offCost to further process Grade 2Final sales value of Grade 3$64,00039.000 cubic yards19,500 cubic yardsper cubic ydper cubic yd$1$2$14.625$73,125

Joint costs are those costs which are incurred simultaneously for producing more than one product.…

Assuming again that all quantities are sold, calculate gross margin for the division if Grade 2 is further processed into Grade 3 and the NRV method is used to allocate joint cos Gross margin S Grade 1 Grade 2/3

Assuming again that all quantities are sold, calculate gross margin for the division if Grade 2 is further processed into Grade 3 and the NRV method is used to allocate joint cos Gross margin S Grade 1 Grade 2/3

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7CE

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