Question: Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 2 0 X 2 , Husky Orchards processed 5 0 0 , 0

Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 20X2, 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 202.
Production and sales value information for 20X2 were as follows:
\table[[,A,B,C,D],[,\table[[Number of],[Cases]],\table[[Sales Value],[at Split-Off]],\table[[Separable],[costs]],\table[[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.
On January 1 of 203 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?
 Husky Orchards processes apples into apple juice, apple sections, and applesauce.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!