Refer to Cornerstone Exercise. Assume that Orchard Fresh, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples:

Required:
1. Allocate the joint cost to the four grades of apples using the weighted average method.
2. What if the factory found that Grade A apples were being valued less by customers and decided to decrease the weight factor for Grade A apples to 3.0? How would that affect the allocation of cost to Grade A apples? How would it affect the allocation of cost to the remaining grades?

Transcribed Image Text:

Grades Grade A Grade B Slices Applesauce Weight Factor 4.0 2.0 1.0 0.5 Pounds 1,600 5,000 8,000 5,400 20,000 Total