Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls.
Required:
a. What is the amount of joint costs allocated to Dulls using the physical units method?
b. What is the gross profit for Brights assuming the net realizable value method is used?
c. What is the gross profit for Dulls assuming the constant gross margin percentage method is used?
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Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A product...
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