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Company processes apples into jam, juice, and canned tomatos. During the summer of 2018, the joint costs of processing the tomatoes were $10,000. There was

Company processes apples into jam, juice, and canned tomatos. During the summer of 2018, the joint costs of processing the tomatoes were $10,000. There was no beginning or ending inventories for the summer. Production and sales value information is as follows:

Product

Cases

Sales Price at Splitoff Point

Separable Costs

Final Selling Price

Jam

100

$6 per case

$3.00 per case

$28 per case

Juice

150

8 per case

5.00 per case

25 per case

Canned

200

5 per case

2.00 per case

10 per case

Product

Final Sales Value

Separable Costs

Net Realizable Value

Percentage

Joint Costs

Allocated

Jam

Juice

Canned Tomato

Totals

Required:

Determine the percentage allocated to each product and amount of Joint Costs allocated to each product if the estimated NRV (net realizable value) method is used.



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