Sunshine Fruit Company The company operates a fresh fruit sorting and fruit canning production facility Fruit that is in good shape and has no blemishesis separated and sold as Fresh Produce. The rest of the fruit is processed and ends up scanned fruit and the used parts of the fruit end up as Brass which I sold to gardening processes where it is composted and used in gardening products. The information for the latest production period for the Preparation department is shown below Products Fresh produce Carved fra Biomass Sales Value at Output Sploff S/KG 200.000 5.00 00.000 Na 75.000 DIO The Preparation departments joint production costs are 51,725,000 The Fresh Produce and Bioms are sold at split off with no further procesin The fruit used for canning has no resale valoe at stoff and is further processed in the Canning department into a variety of saleable canned products S/KG Carning processing costs 2.50 Canned fruit selling price 7.50 Required: 1. What is the joint cost allocation based on physical measure? Round to the nearest dolar 2. What is the Net Realable Value of the canned fruit output 3. What is the joint cost allocation amongst the products based on Net Realizable Value of all produkts Round to the nearest dollar What is the contribution margin of each product based on Physical Measure joint cost wlocation What is the contribution margin of each product based on Net Realuable Value joint cost allocation? 6 Which method would you recommend? Why? 7. Based on requirement 3 NAV, what is the journal entry to clear Work in Process in the preparation department assuming processing in this department is complete and the outputs are transferred Fresh produce and Biomass are transferred to finished goods inventory. The canned frukt value is transferred to Work In Process. Canning department Sunshine Fruit Company The company operates a fresh fruit sorting and fruit canning production facility Fruit that is in good shape and has no blemishesis separated and sold as Fresh Produce. The rest of the fruit is processed and ends up scanned fruit and the used parts of the fruit end up as Brass which I sold to gardening processes where it is composted and used in gardening products. The information for the latest production period for the Preparation department is shown below Products Fresh produce Carved fra Biomass Sales Value at Output Sploff S/KG 200.000 5.00 00.000 Na 75.000 DIO The Preparation departments joint production costs are 51,725,000 The Fresh Produce and Bioms are sold at split off with no further procesin The fruit used for canning has no resale valoe at stoff and is further processed in the Canning department into a variety of saleable canned products S/KG Carning processing costs 2.50 Canned fruit selling price 7.50 Required: 1. What is the joint cost allocation based on physical measure? Round to the nearest dolar 2. What is the Net Realable Value of the canned fruit output 3. What is the joint cost allocation amongst the products based on Net Realizable Value of all produkts Round to the nearest dollar What is the contribution margin of each product based on Physical Measure joint cost wlocation What is the contribution margin of each product based on Net Realuable Value joint cost allocation? 6 Which method would you recommend? Why? 7. Based on requirement 3 NAV, what is the journal entry to clear Work in Process in the preparation department assuming processing in this department is complete and the outputs are transferred Fresh produce and Biomass are transferred to finished goods inventory. The canned frukt value is transferred to Work In Process. Canning department
