Question
Atkins Farms makes two products from their apples: apple pies and apple donuts. From a standard batch of 50,000 pounds of apples, Atkins produces 10,000
Atkins Farms makes two products from their apples: apple pies and apple donuts. From a standard batch of 50,000 pounds of apples, Atkins produces 10,000 pounds of apple pies and 40,000 pounds of apple donuts. Producing a standard batch costs $18,000. The sales price per pound are $5 for pies and $2 for apple donuts.
- Allocate the joint product cost to the two products using weight as the allocation base.
- Allocate the joint product cost to the two products using market value as the allocation base.
Label and place your final answer for 1 and 2 at the top of the answer box. Then after the answer to 2, label and show your work for each part of the question. Just show me numbers - that is usually enough for me to follow your logic.
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