How to Allocate Joint Costs using the Constant Gross Margin Net Realizable Value Method

This video shows how to allocate joint costs to joint products by using the Constant Gross Margin Net Realizable Value Method. This method is useful when you do not know the estimated sales value of one of the joint products at the splitoff point. This method is unique in that it may actually result in a negative cost allocation for one of the joint products. One drawback to the Constant Gross Margin Net Realizable Value Method is that it assumes all products have the same ratio of cost to selling price, which is unlikely to be the case in a real-world setting.
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[@1_fullmovies_127]

no one: Edspira: Dairy farm

[@yoshinegus4019]

you should add a video about the effects of by-products on allocable joint costs.

[@MyFinancialFocus]

Interesting method!

[@liamsanders1502]

You are truly the best man!

[@Edspira]

Thank you my friend!

[@olanrewajuafuye4914]

Thank you!!

[@ayandayeni7968]

This was so helpful. Thank you

[@Edspira]

No problem!

[@aselamarr]

nice! you did made it easier to understand

[@Edspira]

Glad it helped!

[@shreshthupadhyay3552]

Great concept sir ....... Thanks a lot

[@ryanzhao2052]

thanks for all these videos! so many videos about milk :D

[@ugyenthinley914]

🤣😋

[@cathytan9885]

So useful!!!! Thank you so much!!

[@Edspira]

Glad it was helpful!

[@bbparvez]

Thanks for all of your videos :) keep sharing knowledge :)

[@Edspira]

Will do. Thanks Omar!

[@kwadzetechconsultancy7047]

Thank you soooooo much.

[@Edspira]

Glad it helped!

[@perseasparlamas9624]

Legend!

[@Edspira]

😊

[@christopherwabukwisi6839]

Thanks for all the videos

[@sifisogivenphiri8041]

question : how can we know that we are suppossed to use the Constant Gross Profit Margin NRV in a general question instead of the NRV method

[@cathytan9885]

Actually, I think the questions may give you clear instructions on which method to use for the calculations.

[@fiooneer]

thank you so much

[@RangerXXT]

Would you sign my accounting certificate when I get it in April?

[@Edspira]

I would be honored to do so 😀