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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

  1. 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.

    A.
    Jam 30% and $3,000; Juice 50% and $5,000; Canned tomato 20% and $2,000
    B.
    Jam 35,2% and $3,520; Juice 42,25% and $4,225; Canned tomato 22,53% and $2,253
    C.
    Jam 35% and $3,000; Juice 50% and $5,000; Canned tomato 15% and $2,000
    D.
    Jam 25,5% and $2,550; Juice 54,5% and $5,450; Canned tomato 20% and $2,000

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