Answered step by step
Verified Expert Solution
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
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
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