Question: Georgia Fresh raises peaches that at harvest are separated into

Georgia Fresh raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to products based on bushels of output. The $337,500 joint cost for one harvest yielded the following output quantities.
Product Output in Bushels
Premium .......... 16,500
Good ............ 43,560
Fair ............ 5,940
The joint process also created a by-product that had a total net realizable value of $65,000. The company records the by-product inventory at the time of production. Allocate the joint cost to the joint products using bushels of output.

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  • CreatedJune 03, 2014
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