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Idaho Spud Company produces three products: fries, nuggets and crunchy peels. They are all made from a cull potatoes they purchase from sorting sheds. Follow
Idaho Spud Company produces three products: fries, nuggets and crunchy peels. They are all made from a cull potatoes they purchase from sorting sheds. Follow is information about each product. Fries Nuggets 40,000 Peelings 10,000 50,000 45,000 35,000 10,000 Pounds Produced Pounds Sold at Retail Point Sales Price at Split- off $3.00 @2.00 $1.00 $5.00 $4.00 $1.00 Retail Sales Price Separate Costs $50,000 $20,000 $0 Joint Costs before Split-off Point is $200,000. Required: 1. Allocate the joint costs using the NRV method. 2. Allocate the joint costs using the physical units method. 3. What is the other acceptable method used to allocate joint costs? 4. Which is the best method and why
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