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Jamon Beverages processes coffee and bottles it as Frappuccino, Cappuccino, and American. During the year the joint costs of processing the coffee were $270,000. There
Jamon Beverages processes coffee and bottles it as Frappuccino, Cappuccino, and American. During the year the joint costs of processing the coffee were $270,000. There were no beginning or ending inventories. Production and sales value information were as follows:
|
| Sales Value |
|
|
Product | Cases | at Split-Off | Separable Costs | Selling Price |
Frappuccino | 300,000 | $9 per case | $5.00 per case | $32 per case |
Cappuccino | 200,000 | $8 per case | $3.00 per case | $30 per case |
American | 400,000 | $7 per case | $2.00 per case | $20 per case |
- Allocate the joint costs using gross margin percentage method
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