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
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.
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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