Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Allocating Joint Costs Using the Sales - Value - at - Split - Off Method Orchard Fresh, Inc., purchases apples from local orchards and sorts
Allocating Joint Costs Using the SalesValueatSplitOff Method
Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemishfree apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning.
Information on a recent purchase of pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the salesvalueatsplitoff method of joint cost allocation and has provided the following information about the four grades of apples:
Grades Pounds Price at SplitOff per lb
Grade A $
Grade B
Slices
Applesauce
Total
Total joint cost is $
Required:
Allocate the joint cost to the four grades of apples using the salesvalueatsplitoff method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar.
Joint Cost
Grades Allocation
Grade A $fill in the blank
Grade B fill in the blank
Slices fill in the blank
Applesauce fill in the blank
Total $fill in the blank
What if the price at splitoff of Grade B apples increased to $ 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? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar.
Joint Cost
Grades Allocation
Grade A $fill in the blank
Grade B fill in the blank
Slices fill in the blank
Applesauce fill in the blank
Total $fill in the blank
Feedback Area
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started