Determine the amount allocated to each product if the estimated
Red Sauce Canning Company processes tomatoes into catsup,
tomato juice, and canned tomatoes. During the summer of 20X5, 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 is as follows:
Product |
Cases |
Sales Value at Split off Point |
Separable Costs |
Selling Price |
Catsup |
100,000 |
$6 per case |
$3.00 per case |
$28 per case |
Juice |
150,000 |
8 per case |
5.00 per case |
25 per case |
Canned |
200,000 |
5 per case |
2.50 per case |
10 per case |
Required:
Determine the amount allocated to each product if the
estimated net realizable value method is used, and compute the cost per case
