Question
3. Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the
3.
Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the month were as follows:
| Product | Units Produced | Sales Value at Splitoff Point | Separable costs |
| Sugar | 15,000 | $200,000 | $60,000 |
| Sugar Syrup | 10,000 | 175,000 | 192,000 |
| Fructose Syrup | 5,000 | 125,000 | 96,000 |
Required:
Determine the amount of joint cost allocated to each product if the sales value at splitoff method is used.
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Low Income Housing Tax Credit IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
978-1304135087
