Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 2017, Husky Orchards processed 500,000 kilograms of apples. The joint costs of processing the apples were $2,400,000. Following the joint process, the separate products can be further processed with no loss of volume.

There were no beginning inventories at the beginning of 2017.

Production and sales value information for 2017 were as follows:

	Number of Cases	Sales Value at Split-Off	Separable costs	Final Selling Price
Juice	100,000	$ 23 per case	$ 410,000	$ 28 per case
Sections	125,000	$ 20 per case	$ 450,000	$ 26 per case
Sauce	200,000	$ 10 per case	$ 490,000	$ 14 per case

REQUIRED: SHOW YOUR DETAILED CALCULATIONS

1. Assume that Husky Orchards uses the Net Realizable Value Method to allocate joint costs and processes all products to their final state. Allocate the joint costs among the joint products.

2. In January of 2018 a flood destroyed 20,000 cases of Juice and 15,000 cases of Sauce remaining in inventory. What is the value of the destroyed inventory?