Question
5.8 Joint Cost AllocationMarket Value at Split-off Method Sugar Sweetheart, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split-off point, raw
5.8
Joint Cost AllocationMarket Value at Split-off Method
Sugar Sweetheart, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split-off point, raw sugar is immediately sold for $0.20 per pound, while granulated and caster sugar are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $0.25 at the split-off point. One batch of joint production costs $1,640 and yields 3,000 pounds of raw sugar, 3,600 pounds of granulated sugar, and 2,000 pounds of caster sugar at the split-off point.
Allocate the joint costs of production to each product using the market value at split-off method.
Joint Product | Allocation |
Raw sugar | ? |
Granulated sugar | ? |
Caster sugar | ? |
Totals | ? |
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