Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ava's Avocado Company operates an avocado business. The company produces two products: guacamole and avocado oil. Guacamole is made using the avocado flesh and

image text in transcribedimage text in transcribed

Ava's Avocado Company operates an avocado business. The company produces two products: guacamole and avocado oil. Guacamole is made using the avocado flesh and avocado oil is made using the avocado seed. The separation process produced 14,500 lb of avocado flesh and 6,000 lbs of avocado seeds. The production process costed $13,000. These products can be sold for $1.20 per lb for avocado fruit and $0.50 lbs for the avocado seed. To make the guacamole there is an additional cost of $15,500 with a final sale value of $35,000. To make the avocado oil, there is an additional cost of $11.000 with a final sale value of $15,000. You are a cost accountant, and you are asked to compare the joint costing methods: sales value at split-off, net realizable value, and physical quantities. You have already calculated the joint cost allocations for avocado flesh and the avocado seeds. You create a dashboard with the following data visualizations: 1 2. 3. 4. Joint Costs Allocation - This is a stacked bar chart showing the joint cost for the avocado flesh and the avocado seeds for each joint costing method. Joint Costs Allocation - This is a stacked bar chart showing the joint cost for the avocado flesh and the avocado seeds for each joint costing method. Avocado Oil Gross Margin %-This is a line chart showing the avocado oil gross margin percentage for each joint costing method. Guacamole Gross Margin Cost Component-This is a clustered bar chart showing the guacamole final sale value, the joint costs allocated to avocado flesh, the additional costs to produce the guacamole and the gross margin. Values are shown for each of the joint costing method.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Accounting An Integrated Approach

Authors: Penne Ainsworth, Dan Deines

6th edition

78136601, 978-0078136603

More Books

Students also viewed these Accounting questions

Question

Why is (W * Y) equal to (W Answered: 1 week ago

Answered: 1 week ago

Question

f. Describe the anticipated benefits of the project.

Answered: 1 week ago