Instant Foods produces two ty

timer Asked: Nov 12th, 2015

Question description

 Instant Foods produces two types of microwavable products- beef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodles and spices. The production of ramen results in a waste product referred to as stock, which Instant dumps at negligible costs at a local drainage area. In June 2009, the following data were reported for the production and sales of beef-flavored and shrimp-flavored ramen.

  Due to the popularity of its microwavable products, Instant decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are to be sold under the names Special B and Special S, respectively. The following is the monthly data for all the products


Calculate Instant’s gross-margin percentage for Special B and Special S when joint 

 costs are allocated using the following:

  a. Sales value added at splitoff method

  b. Physical-measure method

  c. Net realizable value method

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