Question 16 (2.5 points)

Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November, they incurred joint processing costs of $420,000. Production and sales value information for November are as follows:

Product	Cases	Selling Price/Case	Additional Costs/Case
Catsup	100,000	$10	$2
Tomato Juice	150,000	$8	$1
Canned Tomatoes	250,000	$12	$3

If the company has a philosophy of marking up their products 20% over cost, the selling price per case of Tomato Juice should be (using the net realizable value method) (round to 2 decimal places)

Question 16 options:

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Question 17 (2.5 points)

Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November, they incurred joint processing costs of $420,000. Production and sales value information for November are as follows:

Product	Cases	Selling Price/Case	Additional Costs/Case
Catsup	100,000	$10	$2
Tomato Juice	150,000	$8	$1
Canned Tomatoes	250,000	$12	$3

The unit cost per case of Canned Tomatoes (using the physical volume method) is (round to 2 decimal places)

Question 17 options:

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Question 18 (2.5 points)

A cost that is incurred between the split-off point and the point of sale is known as a:

Question 18 options:

	Unit cost
	Split-off cost
	Separable cost
	Joint cost

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Question 19 (2.5 points)

Company X uses a joint processing system for it's 2 products Y & Z. As a result of using the physical volume method of joint cost allocation instead of the net realizable value method, they have overstated the unit cost for product Z and understated the unit cost for product Y. If Company X prepares separate financial statements for each of the 2 products, which of the following statements is true

Question 19 options:

	Gross Margin for product Z will be overstated
	Net Income for product Y will be overstated
	COGS for product Z will be overstated
	There will be no effect on the Income Statements for either Y or Z

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Question 20 (2.5 points)

Zell Company derives two products, Great and Grand, from a single process. Great and Grand can be sold either as is or after further processing. Costs and selling prices are as follows:

Product	Gallons	Selling Price (as is)	Additional Processing Costs	Selling price (after processing)
Great	30,000	$8/gallon	$50,000	$10/gallon
Grand	20,000	$6/gallon	$80,000	$9.50/gallon

Which of the following products should Zell Company process further?

Question 20 options:

	Grand only
	Great only
	neither Great nor Grand
	both Great and Grand