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Idaho Spuds, Inc. processes potatoes into four types of frozen fries for retail sale. Last month, the company incurred $280,000 in joint processing costs. There

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Idaho Spuds, Inc. processes potatoes into four types of frozen fries for retail sale. Last month, the company incurred $280,000 in joint processing costs. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows: Product French Fries Crinkle Fries Curly Fries Steak Fries $ 0.30 Sales Value at Split-off Ending Point (per oz) Inventory (oz.) 500,000 0.40 250,000 0. 45 1 00,000 0.10 50,000 Total Ounces 6,000,000 2,000,000 2,000,000 1,000,000 Required: Determine the value of ending inventory value of each product if the sales value at split-off method is used. Sales of curly fries have been declining over the past year. The marketing manager of Idaho Spuds believes this is because spicy curly fries have become more popular than plain curly fries. She recommends that the company start making spicy curly fries rather than plain curly fries. The company would charge $0.49 per oz. for the spicy curly fries. Additional costs of $0.025 per oz. in materials and $0.011 per oz. in labor would be incurred to make the spicy fries. Should the company start making spicy curly fries or continue to make plain curly fries? Support your conclusion with numerical calculations. Idaho Spuds, Inc. processes potatoes into four types of frozen fries for retail sale. Last month, the company incurred $280,000 in joint processing costs. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows: Product French Fries Crinkle Fries Curly Fries Steak Fries Total Ounces 6.000.000 3,000,000 2,000,000 1,000,000 Sales Value at Split-off Ending Point (per oz) Inventory (oz.) $ 0.30 500,000 0.40 250,000 0.45 100,000 0.10 50,000 Required: 1. Determine the value of ending inventory value of each product if the sales value at split-off method is used. Sales of curly fries have been declining over the past year. The marketing manager of Idaho Spuds believes this is because spicy curly fries have become more popular than plain curly fries. She recommends that the company start making spicy curly fries rather than plain curly fries. The company would charge $0.49 per oz. for the spicy curly fries. Additional costs of $0.025 per oz. in materials and $0.011 per oz. in labor would be incurred to make the spicy fries. Should the company start making spicy curly fries or continue to make plain curly. fries? Support your conclusion with numerical calculations

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