Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Casey Inc. produces chocolate candies. Two popular products are chocolate bunnies and chocolate Easter eggs. Both the bunnies and the eggs use milk chocolate. The

image text in transcribed
Casey Inc. produces chocolate candies. Two popular products are chocolate bunnies and chocolate Easter eggs. Both the bunnies and the eggs use milk chocolate. The candies are poured into molds, wrapped and packaged. Joint costs include the raw chocolate, sugar and other ingredients used to make milk chocolate. One month's production resulted in joint costs totaling $120,000. The joint process resulted in production of 400,000 pounds of bunnies and 240,000 pounds of eggs. Costs to finish production of the bunnies were $65,000, and costs to finish the eggs totaled $171,000. Bunnies sell for $3.60 per pound, and eggs sell for $5.40 per pound. Using the NRV method, how much of the joint cost should be allocated to the bunnies, and how much should be assigned to the eggs? $63,158 to the bunnies and $56,842 to the eggs $75,000 to the bunnies and $45,000 to the eggs $48,000 to the bunnies and $72,000 to the eggs $66,000 to the bunnies and $54,000 to the eggs Casey Inc. produces chocolate candies. Two popular products are chocolate bunnies and chocolate Easter eggs. Both the bunnies and the eggs use milk chocolate. The candies are poured into molds, wrapped and packaged. Joint costs include the raw chocolate, sugar and other ingredients used to make milk chocolate. One month's production resulted in joint costs totaling $120,000. The joint process resulted in production of 400,000 pounds of bunnies and 240,000 pounds of eggs. Costs to finish production of the bunnies were $65,000, and costs to finish the eggs totaled $171,000. Bunnies sell for $3.60 per pound, and eggs sell for $5.40 per pound. Using the NRV method, how much of the joint cost should be allocated to the bunnies, and how much should be assigned to the eggs? $63,158 to the bunnies and $56,842 to the eggs $75,000 to the bunnies and $45,000 to the eggs $48,000 to the bunnies and $72,000 to the eggs $66,000 to the bunnies and $54,000 to the eggs

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

Money And Wealth

Authors: Joslyn Pine

1st Edition

0486486389, 9780486486383

More Books

Students also viewed these Accounting questions

Question

What do you know of my (the interviewers) research program?

Answered: 1 week ago

Question

10. What is meant by a feed rate?

Answered: 1 week ago