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Organic Fertilizer Products GFA has a contract with four local cities to acquire the compost that is recycled by city residents. GFA only pays for
Organic Fertilizer Products
GFA has a contract with four local cities to acquire the compost that is recycled by city residents. GFA only pays for transportation from the compost collection facility. Once the compost is delivered to GFA's location, it is processed into three different kinds of organic fertilizer:
GreenBoost Compost Blend: nutrientrich organic fertilizer made from carefully selected composted organic materials, including plant matter, animal manure, and agricultural residues. This is the most popular fertilizer as it is good for all types of crops.
Organicharvest Compost Tea: a liquid organic fertilizer produced through the process of aerated compost tea brewing. This fertifizer is primarily used for hydroponic and greenhouse farming.
BioGrow Organic Compost Pellets; slowrelease organic fertilizer pellets made from premiumquality composted materials and natural binders. This fertilizer is used by home gardeners and landscapers.
These products are a result of a joint process that involves the removal of noncompostable materials from the raw compost, mixing the compost with various chemicals that accelerate the decomposition process, and then mixing the compost with organic soil and nutrients. This results in the GreenBoost Compost Blend product. Some of this product is further processed to create the Organicharvest and BioGrow products.
In the output at the splitoff point was kilograms of GreenBoost. Each kilogram of GreenBoost retails for $ per kilogram.
The joint costs of processing the compost in was $ GFA used kilograms of the GreenBoost to create OrganicHarvest, and kilograms to create BioGrow. There is a loss of volume when creating the BioGrow product, and a loss of volume when creating Organicharvest.
The following table outlines the process:
tableProductstableVolume atsplitoff inkilogramstableSeparableprocessingcoststableVolume afteradditionalprocessing inkilogramstableRevenueperkilogramGreenBoost$
Calculate allocated joint cost using excel
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