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2.
Chocolate-
Milk-
Powder
Chocolate
Total
a.
Revenues (6,500 × $9; 13,500 × $10)
$58,500
$135,000
$193,500
Cost of goods sold
Joint costs
15,500
46,500
62,000
Separable costs
50,100
60,115
110,215
Production costs
65,600
106,615
172,215
Deduct ending inventory
(2,600 × $7.21; 1,480 × $7.12)
18,746
10,538
29,284
Cost of goods sold
46,854
96,077
72,931
Gross margin
$11,646
$38,923
$50,569
Gross-margin percentage
19.9%
28.8%
b.
Revenues
$58,500
$135,000
$193,500
Cost of goods sold
Joint costs
31,000
31,000
62,000
Separable costs
50,100
60,115
110,215
Production costs
81,100
91,115
172,215
Deduct ending inventory
(2,600 × $8.91; 1,480 × $6.08)
23,166
8,998
32,164
Cost of goods sold
57,934
82,117
140,051
Gross margin
$566
$52,883
$53,449
Gross-margin percentage
0.97%
39.2%
c.
Revenues
$58,500
$135,000
$193,500
Cost of goods sold
Joint costs
16,232
45,768
62,000
Separable costs
50,100
60,115
110,215
Production costs
66,332
105,883
172,215
Deduct ending inventory
(2,600 × $7.29; 1,480 × $7.07)
18,954
10,464
29,418
Cost of goods sold
47,378
95,419
142,797
Gross margin
$11,122
$39,581
$53,449
Gross-margin percentage
19.0%
29.3%
d.
Revenues
$58,500
$135,000
$193,500
Cost of goods sold
Joint costs
10,774
51,226
62,000
Separable costs
50,100
60,115
110,215
Production costs
60,874
111,341
172,215
Deduct ending inventory
(2,600 × $6.69; 1,480 × $7.43)
17,394
10,996
28,390
Cost of goods sold
43,480
100,345
143,825
Gross margin
$15,020
$34,655
$49,675
Gross-margin percentage
25.7%
25.7%
