Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 2017, Husky Orchards processed 500,000
Question:
Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 2017, Husky Orchards processed 500,000 kilograms of apples. The joint costs of processing the apples were $2,400,000. Following the joint process, the separate products can be further processed with no loss of volume.
There were no beginning inventories at the beginning of 2017.
Production and sales value information for 2017 were as follows:
Number of Cases | Sales Value at Split-Off | Separable costs | Final Selling Price | |
Juice | 100,000 | $ 23 per case | $ 410,000 | $ 28 per case |
Sections | 125,000 | $ 20 per case | $ 450,000 | $ 26 per case |
Sauce | 200,000 | $ 10 per case | $ 490,000 | $ 14 per case |
REQUIRED: SHOW YOUR DETAILED CALCULATIONS
Assume that Husky Orchards uses the Net Realizable Value Method to allocate joint costs and processes all products to their final state. Allocate the joint costs among the joint products.
In January of 2018 a flood destroyed 20,000 cases of Juice and 15,000 cases of Sauce remaining in inventory. What is the value of the destroyed inventory?
Expert Answer:
2 decimals is used in calculation Value of destroyed inventory 327250 Allocation of ... View the full answer
