Chem Manufacturing Company processes direct materials up to the split-off point where two products (X and Y) are obtained and sold. The following information was collected for the month of November:
| Direct materials processed: | 10,200 gallons (10,200 gallons yield 9500 gallons of good product and |
700 gallons of shrinkage)
| Sales: | X | 5050 at $300 per gallon |
The cost of purchasing 10,200 gallons of direct materials and processing it up to the split-off point to yield a total of 9500 gallons of good products was $1,050,000.
The beginning inventories totaled 35 gallons for X and 400 gallons for Y. Ending inventory amounts reflected 565 gallons of Product X and 1,515,000 gallons of Product Y. October costs per unit were the same as November.
Using the physical-volume method, what is Product X's approximate gross-margin percentage? (Round all intermediary calculations two decimal places.)
◦ 63%
◦ 56%
◦ 171%
◦ 68%
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