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Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20x5, the joint costs of processing the tomatoes
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20x5, the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer is as follows: Product Cases Sales Value at Splitoff Point Senarable Costs Selling Price Catsup Juice Canned 100,000 150,000 200,000 $6 per case 8 per case 5 per case $3.00 per case 5.00 per case 2.50 per case $28 per case 25 per case 10 per case Required: Determine the amount allocated to Juice product if the estimated net realizable value method is used
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