Question: Juice Co. makes juice in a processing facility in British Columbia. The co-operative buys raw juice from a supplier and then processes the juice by
Juice Co. makes juice in a processing facility in British Columbia. The co-operative buys raw juice from a supplier and then processes the juice by adding sugar, vitamins, and preservatives. After processing, it sells fresh juice directly to retail outlets, such as supermarkets, or processes the juice into apple concentrate for shipment overseas.
Information on its production is as follows:
Total Joint Cost: $140,000
Raw Materials Input (litres): Fresh Juice: 28,800 ; Concentrate: 4,800 ; Total=$33,600
What costing method should be used? Please calculate the cost allocation between fresh juice and concentrate.
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