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I need to know how to get the total production costs, and the joint costs allocated. Blue Stripe Company processes tomatoes into ketchup, tomato juice,
I need to know how to get the total production costs, and the joint costs allocated.
Blue Stripe Company processes tomatoes into ketchup, tomato juice, and canned tomatoes. During July 2020, the joint costs of processing the tomatoes were $2,107,560. The company maintains no inventories. Production and sales information follows: E: (Click the icon to view the production and sales information.) (Click the icon to view amounts calculated under the estimated net realizable value method.) Calculate the amount of joint cost allocated to each product if Blue Stripe uses the constant gross-margin percentage NRV method. Begin by determining the overall gross margin. Total estimated NRV Joint costs Overall gross margin 6,895,440 $ 9,003,000 2,107,560 $ Now determine the gross margin allocated to each product using the table below and then calculate the joint costs allocated to each product if Blue Stripe uses the constant gross-margin percentage NRV method. Final Gross Gross Total Total Joint Sales Margin Margin Production Separable Costs Product Value Percentage Allocated Costs Costs Allocated Ketchup $ 2,912,000 61 % $ 1,776,320 $ 1,135,680 $ 416,000 $ 719,680 Juice 5,536,000 61 % 3,376,960 2,159,040 865,000 1,294,040 Canned 2,856,000 61 % 1,742,160 1,113,840 1,020,000 93,840 Totals $ 11,304,000 $ 6,895,440 $ 4,408,560 $ 2,301,000 $ 2,107,560 Data Table Product Cases Sales Value at Splitoff Point Separable Costs $5 per case $4 per case Selling Price Ketchup 104,000 $28 per case $32 per case Juice 173,000 $6 per case $5 per case Canned 204,000 $12 per case $5 per case $14 per case Print Done 15.30 UUU h 337h9u 59UZUI xnn 794 140 Reference Final Sales Value Total Net Separable Realizable Costs Value Percentage Joint Costs Total Costs Separab Allocated Costs Product Ketchup $2,912,000 $ 416,000 $2,496,000 28% $2,107,560 $ 590,117 $ 416,00 52% 2,107,560|1,095,931| 865,00 Juice 5,536,000 865,000 4,671,000 Canned 2,856,000 1,020,000 1,836,000 20% 2,107,560| 421,512 1,020,00 Print DoneStep by Step Solution
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