Accounting for Joint Production Processes Constant Gross Margin Percentage Method Percent Revenue($5x1,000)+($4x3,000) $17,000 100% Costs[$5,750+($1x1,000)+($2x3,000)] 12.750 75% Gross margin $4,250 25% Alpha Beta Eventual market value $5,000 $12,000 Less:Gross margin at 25%of market value 1250 3.000 Cost of goods sold $3,750 $9,000 Less:Separable costs 1.000 6.000 Allocated joint costs $2,750 $3,000 海南大学董建华讲授 ☐9-24海南大学董建华讲授 9- 24 Percent Revenue ($5 x 1,000) + ($4 x 3,000) $17,000 100 % Costs [$5,750 + ($1 x 1,000) + ($2 x 3,000)] 12,750 75 % Gross margin $ 4,250 25 % Alpha Beta Eventual market value $ 5,000 $12,000 Less: Gross margin at 25% of market value 1,250 3,000 Cost of goods sold $ 3,750 $ 9,000 Less: Separable costs 1,000 6,000 Allocated joint costs $2,750 $ 3,000 Accounting for Joint Production Processes Constant Gross Margin Percentage Method