Question
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
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 |
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started