Tamarisk & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels and crushes them, at which point the juice and the pulp are separately identifiable. Tamarisk currently processes the pulp further to transform it into his great grandmother's secret$-$recipe spaghetti sauce. The specifics on each of these products for one month are as follows:

Joint processing cost $$151,000$

Quantity of tomatoes juice produced $3,000$ gallons

Value of tomato juice $$4\mathrm{.}00$ per gallon

Quantity of tomato puree produced $15,000$ pounds

Additional cost for spaghetti sauce $$12,000$

Final Sales value of spaghetti sauce $$199,000$

$($a$)$ Using the NRV method for allocating joint costs, specify how much joint cost will be alloated to the juice and to the puree$/$spaghetti sauce

Juice Puree$/$Sauce

Allocated joint costs $$\_\_\_\_\_\_\_\_$ $$\_\_\_\_\_\_\_\_$

$($b$)$ Tamarisk recently became aware of consumer preferences for flavored tomato juice; with some slight modifications to his facility, he can process tomato juice further and turn it into clam$-$flavored tomato juice for an additional processing cost of $$1,400.$ With no change in total volume, this flavored juice could sell for $$38,00$; given this new information, recalculate the joint cost allocation for both joint products under NRV method.

Juice Puree

Allocated joint costs $$\_\_\_\_\_\_\_\_$ $$\_\_\_\_\_\_\_\_\_$

$($c$)$ Assuming that Tamarisk could otherwise sell the tomato puree as is for $$148,000($instead of turning it into spaghetti sauce$),$ would you recommend he process both of these products past the split$-$off point? Show how much better or worse off Tamarisk would be if the puree and the juice are both processed further

Juice Puree

Net Benefit $$\_\_\_\_\_\_\_\_\_$ $$\_\_\_\_\_\_\_\_$

Tamarisk's split$-$off point: $($better off $/$ worse off$)$ by a total $$\_\_\_\_\_\_\_\_$ by processing both products beyond the split$-$off point.