Question
Jim Davis Company processes pork 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 pork 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. Pork is 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. a. 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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