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Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20x3, the joint costs of processing the tomatoes
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20x3, 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 were as follows:
Product | units | sales value at splitoff point | seperable costs | selling price |
Catsup | 100,000 | $6 per case | $300,000 | $28 per case |
Juice | 150,000 | 8 per case | 750,000 | 25 per case |
Canned | 200,000 | 5 per case | 500,000 | 10 per case |
Determine the amount of joint costs allocated to each product if:
1. Physical Units Method is used.
2. The Sales Value at Splitoff method is used.
3. The estimated net realizable value method is used
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