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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
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 joint cost allocated to Canned Tomatoes (using the net realizable value method) is (round to the closest $)
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