Gert Your-Money Vineyard, (The GYM), makes grapejuice,raisins, and wine from its

Question

Gert Your-Money Vineyard, (The GYM), makes grapejuice,raisins, and wine from its grapes. Joint Product Costs are $100,000. Which of the following must be CORRECT? Select one a. The total costs of making the wine can be no more than $100,000 b The GYM cannot use the Constant Gross Margin Percentage Net Realizable Value method c. The total costs of grape juice, raisins, and wine, will each be separable costs plus some of the $100,000 d. The GYM must use the Constant Gross Margin Percentage Net Realizable Value method o Next page

Explanation / Answer

Answer would be "c" as Joint cost means cost incurred for multiple output from single input or single production process. Point "c" states that each product will incur Joint production cost and extra cost which are not incurred in all output products such as grape juice , raisins and wine.

Thus, there are two cost joint production cost and other separate costs.

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.