Question
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 |
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Juice |
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Canned Tomato |
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Totals |
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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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