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Overview:

Rabito, Inc., is a large food-processing company. It processes 157,000 pounds of peanuts in the peanuts department at a cost of $303, 100 to yield 25,000 pounds of product A, 99,000 pounds of product B, and 14,000 pounds of product C. (Click the icon to view the information.) Product A is processed further in the salting department at a cost of $36,000. It yields 25,000 pounds of salted peanuts, which are sold for $12 per pound. Product B (raw peanuts) is sold without further processing at $4 per pound. Product C is considered a byproduct and is processed further in the paste department at a cost of $13,000. It yields 14,000 pounds of peanut butter, which are sold for $7 per pound. . The company wants to make a gross margin of 10% of revenues on product C 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.) 0 Figure Joint Costs $303,100 Separable Costs 25,000 pounds Salting Department Processing $36,000 Salted Peanuts 25,000 pounds $12/16 Peanuts Department Processing of 157,000 16 Raw Peanuts 99,000 pounds $4/1b Paste Department Processing $13,000 Peanut Butter 14.000 pounds $7/16 14,000 pounds Splitoff Point Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. 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. Joint costs Net realizable value Joint costs allocated