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Donna works at the cranberry plant in town, which uses a common process of cleaning, sorting, flash freezing, and crushing the berries. At the end
Donna works at the cranberry plant in town, which uses a common process of cleaning, sorting, flash freezing, and crushing the berries. At the end of this process, which costs $43,000, cranberry juice and cranberry puree are available. The cranberry puree is then made into sauce, at an additional cost of $1.50 per pound, while the cranberry juice is further processed into syrup, at an additional cost of $2.00 per gallon. There is no change in volume during the additional processing. Additional information is as follows. (a) Using the NRV method, allocate the joint costs to each product, and determine gross margin amounts and percentages for each if 80% of each final product is sold. (Round proportion to 4 decimal places, e.g. 0.2512 . Round allocated joint costs to 0 decimal places, e.g. 125, gross margin to 2 decimal places, e.g. 15.25 and gross margin percentage to 1 decimal place, e.g. 15.2\%.)
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