OBJECTIV CORNER olve Osts tone Exercise 7.8 Allocating Joint Costs Using the Weighted Average Method Cornerstone Exercise 7.7. Assume that Orchard Fresh, Inc., uses the weighted average of joint cost allocation and has assigned the following weights to the four grades of apples: Grades Pounds Weight Factor Grade A 1.600 4.0 Grade B 5.000 Slices 8.000 Applesauce 5,400 Total 20,000 Fac- costs 0.5 embly (continued) Total joint cost is $18,000. Chapter 7 Allocating Costs of Support Departments and Joint Products ohted average method all cost allocations to Required: 1. Allocate the joint cost to the four grades of apples using the weighted avera (Carry out the percent calculations to four significant digits. Round all costa the nearest dollar.) 2. What if the factory found that Grade A apples were being valued less by cust decided to decrease the weight factor for Grade A apples to 3.0? How would that allocation of cost to Grade A apples? How would it affect the allocation of com remaining grades? Co- Me Rel tion d less by customers and w would that affect the Rec