Question
Jim Davis Company processes hogs into three products, chops, bacon and sausage.Production and selling price data follow: Chops 100,000 lbs. $5.00/ lb. Bacon 210,000 lbs.
Jim Davis Company processes hogs into three products, chops, bacon and sausage.Production and selling price data follow:
Chops
100,000 lbs.
$5.00/ lb.
Bacon
210,000 lbs.
$4.00/ lb.
Sausage
410,000 lbs.
$2.00/ lb.
Hogs are processed in the Processing Department.From the split-off point, bacon is smoked, sliced and packaged in the Bacon Department.The cost incurred for these processes was $100,000.In addition, sausage was ground and formed into patties in the Sausage Department after the split-off.This process cost $60,000.
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Using the information above, if joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.
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