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

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

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?

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