Refer to Cornerstone Exercise 7-7. Assume that Appletime, Inc., uses the sales-valueat-

split-off method of joint cost allocation and has provided the following information about the four grades of apples:

Required:
1. Allocate the joint cost to the four grades of apples using the sales-value-at-split-off method. (Carry out the percent calculations to four significant digits. Round all cost allocations to the nearest dollar.)
2. What if the price at split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B apples? How would it affect the allocation of cost to the remaining grades?LO1

Transcribed Image Text:

Grades Pounds Price at Split-Off (per lb.) Grade A 1,500 $4.00 Grade B 5,000 1.00 Slices 8,000 0.50 Applesauce 5,500 0.10 20,000 Total Total joint cost is $6,000.