Raber, Inc., is a large food-processing company. It processes 154,000 pounds of peanuts in the peanuts department at a cost of $228,900 to yield 15,000 pounds of product A, 61,000 pounds of product B, and 17,000 pounds of product C. (Click the icon to view the information.) The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows: (Click the icon to view the overview.) Read the requirements. Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Let's begin by determining the formula to compute the joint costs allocated for product C by entering the appropriate amounts. Joint costs Net realizable value Joint costs allocated 228900 157900 71000 Now compute the net realizable value, weighting and joint costs allocated for products A and B by entering the appropriate amounts. (Round the weighting amounts to four decimal places.) Net realizable value Weighting Joint costs allocated A 122000 B 366000 488000 Total Now determine the formula to compute the unit cost for products A, B, and then enter the appropriate amounts. (Round your final answers to two decimal places. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Total costs Number of units Unit cost A . B + = Raber, Inc., is a large food-processing company. It processes 154,000 pounds of peanuts in the peanuts department at a cost of $228,900 to yield 15,000 pounds of product A, 61,000 pounds of product B, and 17,000 pounds of product C. (Click the icon to view the information.) The company wants to make a gross margin of 10% of revenues on product and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows: (Clic i Requirements Read the Requiremer 1. Let's begin Figure Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Compute unit costs per pound for products A, B, and C, treating all three as joint products and allocating joint costs by the NRV method. 2. Joint Costs $228,900 Separable Costs Now comput 15,000 pounds Salting Department Processing $13,000 Salted Peanuts 15,000 pounds $9/1b Print Done B Peanuts Department Processing of 154,000 lb Raw Peanuts 61,000 pounds $6/1b More Info Total Now determ Paste Department Processing $12.100 Peanut Butter 17,000 pounds $10/16 A 17,000 pounds Product A is processed further in the salting department a cost of $13,000. It yields 15,000 pounds of salted peanuts, which are sold for $9 per pound. Product B (raw peanuts) is sold without further processing at $6 per pound. Product C is considered a byproduct and is processed further in the paste department at a cost of $12,100. It yields 17,000 pounds of peanut butter, which are sold for $10 per pound. B Splitoff Point Print Done Print Done Choose front
