Ch.17 Q6

in Raber, Ino, is a large food processing company. It processes 154,000 pounds of peanuts in the peanuts department at a cost of $226,900 to yield 15,000 pounds of product A, 61,000 pounds of product B, and 17,000 pounds of product Click the loon to view the information.) The company wants to make a grous margin of 10% of revenues on producto and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows: Click the icon to view the overview) Read the autremento 3 re Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRW method for allocating Joint cont. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Let's begin by determining the formula to compute the joint costs allocated for product C by entering the appropriate amounts Not realizablo volue Joint costs allocated Joint costs c Requirements 11 1. Compute unit costs per pound for products A, B, and treating C as a byproduct. Uso the NRV method for allocating joint costs Deduct the NRV of the byproduct produced from the joint cost of products A and B. Compute unit costs per pound for products A. B, and C, treating all three as joint products and allocating joint costs by the NRV method 2. an Print Done mewa Figure - X S: a large peanu 1,000 con to Separable Costs Joint Costs $228,900 ps on pr duct C 15,000 pounds Salting Department Processing $13,000 Salted Peanuts 15,000 pounds 59/16 .Com roduc Peanuts Department Processing of 154,000 lb Raw Peanuts 61,000 pounds $6/16 duct th eterm Joir Paste Department Processing $12,100 Peanut Butter 17,000 pounds $10/16 17,000 pounds Splitoff Point - More info Product A is processed further in the salting department at a cost of $13,000. It yields 15,000 pounds of salted peanuts, which are sold for $9 per pound, Product B (raw peanuts) is sold without further processing at $6 per pound. Product C is considered a byproduct and is processed further in the paste department at a cost of $12,100. It yields 17,000 pounds of peanut butter, which are sold for $10 per pound. Print Done