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5. Green Needs Inc. is a vegetable processor that purchases vegetables from local farmers. The majority of its processing capacity is devoted to broccoli. A
5. Green Needs Inc. is a vegetable processor that purchases vegetables from local farmers. The majority of its processing capacity is devoted to broccoli. A typical month of processing consists of buying 10,000 kilograms of broccoli at a cost of $0.55 per kilogram The broccoli then goes through the following processes Cutting Sorting Cleaning $ 7,000 2,500 14,000 Total Product yields and average selling price per kilogram are as follows Selling Additional Yield (Tetra price per Kilograms Selling price processingPaks) Tetra Pak Fresh broccoli 6,000 2,500 Grade B brocci 1000 9.500 $2.85 $2.10 crowns Frozen broccoli $5,500 3,000 $4.80 500 kg of the purchased product is waste and cannot be sold Grade B broccoli is made into broccoli soup and sold in Tetra Paks. The cost of this additional processing is $5,500 and each package can be sold for $4.80 Using the net realizable method, how much of the joint costs should be allocated to the broccoli soup? a) $6,693 b) $8,259 c) $9,208 d) $11,363
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