Question
Q.Coffee 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
Q.Coffee 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
a. Allocate the joint costs using the physical output method. [1 Point]
b. Allocate the joint costs using the net realizable value method. [1 Point]
c. Allocate the joint costs using sales value at split-off point method. [1 Point]
Note: Please make the answer to be copied on Word file.
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