Tangy Fresh produces orange juice and orange marmalade from a joint process. Second-stage processing of the marmalade creates an orange pulp by-product that can be sold for $0.05 per gallon. Expenses to distribute pulp total $90.

In May 2010, 140,000 pounds of oranges costing $44,200 were processed in Department 1, with labor and overhead costs of $33,800 incurred. Department 1 processing resulted in 56,000 gallons of output, of which 40 percent was transferred to Department 2 to become orange juice and 60 percent was transferred to Department

3. Of the input going to Department 3, 20 percent resulted in pulp and 80 percent resulted in marmalade. Joint cost is allocated to orange juice and marmalade on the basis of approximated net realizable values at split-off.

The orange juice in Department 2 was processed at a total cost of $9,620; the marmalade in Department 3 was processed at a total cost of $6,450. The net realizable value of pulp is accounted for as a reduction in the separate processing costs in Department 3. Selling prices per gallon are $5.25 and $3.45 for orange juice and marmalade, respectively.

a. Diagram Tangy Fresh's process in a manner similar to Exhibits 11-5 and 11-10.

b. How many gallons leaving Department 1 were sent to Department 2 for further processing? To Department 3?

c. How many gallons left Department 3 as pulp? As marmalade?

d. What is the net realizable value of pulp?

e. What is the total approximated net realizable value of the orange juice? The marmalade?

f. What amount of joint cost is assigned to each main product?

g. If 85 percent of the final output of each main product was sold during May and Tangy Fresh had no beginning inventory of either product, what is the value of the ending inventory of orange juice and marmalade?