Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting...

 

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Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,128 cubic yards of wood chips, 14,550 cubic yards of mulch, and 9,896 cubic yards of wood pulp. The joint production process costs a total of $38,000 per batch. After the split-off point, wood chips are immediately sold for $26 per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be $29 and $24 per cubic yard, respectively. The additional production process of the wood pulp costs $6 per cubic yard, after which it is sold for $37 per cubic yard. The additional production process of the mulch costs $5 per cubic yard, after which it is sold for $32 per cubic yard. Allocate the joint costs of production to each product using the net realizable value method. Do not round intermediate calculations. Round your answers to the nearest dollar. Joint Product Wood chips Wood pulp Mulch Totals Allocation 38,000 Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,128 cubic yards of wood chips, 14,550 cubic yards of mulch, and 9,896 cubic yards of wood pulp. The joint production process costs a total of $38,000 per batch. After the split-off point, wood chips are immediately sold for $26 per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be $29 and $24 per cubic yard, respectively. The additional production process of the wood pulp costs $6 per cubic yard, after which it is sold for $37 per cubic yard. The additional production process of the mulch costs $5 per cubic yard, after which it is sold for $32 per cubic yard. Allocate the joint costs of production to each product using the net realizable value method. Do not round intermediate calculations. Round your answers to the nearest dollar. Joint Product Wood chips Wood pulp Mulch Totals Allocation 38,000

Answer rating: 100% (QA)

Heres the allocation of joint costs to each product using the net realizable value method Step 1 Calculate Net Realizable Value per Unit Wood chips Si... View the full answer