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

Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204 and B216. Sales.
  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 $3,131,000. A101 A204 B216 Gallons sold 220, eee 210,000 134,000 Final sales price per gallon $ 14 $7 $7 Price at split-off 11 4 4 Separable processing cost $ 585,000 $ 92,000 $ 486,000 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. (Do not round intermediate calculations. 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.) 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. (Do not round intermediate calculations. 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.) A101 A204 B216 a Physical Mensura Method Cost per unit Total gross margin 6 Sales Value at Split of Method Cost per unit Total gross margin c. Not Realizable Value Method Cost per unit Total gross margin d. Constant Gross Margin Method Cost per unit Total gross margin 4     May 16 2022 05:48 PM

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