Oliver Inc. makes three types of olive oil that can be sold at split-off or processed further and then sold. The joint cost for October is \(\$ 325,000\).

The number of ounces in a bottle of each product is: Product A, twelve; Product B, sixteen; Product C, eighteen.

a. Allocate the joint cost based on (1) the number of units, (2) weight, (3) sales value at split-off, and (4) approximated net realizable. (Round proportions to the nearest whole percentage [without exceeding \(100 \%\) ] and dollar amounts to the nearest whole dollar.)

b. Prepare an analysis to determine whether each product should be processed further.

c. Assume that all products are processed further and completed. At the end of the period, the inventories are as follows: Product A, 800 units; Product B, 1,100 units; Product C, 1,900 units. Determine the values of the inventories based on answers obtained in (a). Round your final answer to the nearest whole dollar.

Transcribed Image Text:

Product Units Sales Price at Split-Off A. 30,000 $5 B 45,000 4 1 Separate Cost After Split-Off Final Sales $3 Price $12 10 C. 20,000 8 2 15