keAssignment/takeAssignmentMain.do?invoker=&take AssignmentSessionLocator=&inprogress=false eBook Calculator Allocating Joint Costs Using the Sales-Value-at-Split-Off Method Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four Categories. Grade A are large blemish free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the sales-value-at-split off method of joint cost allocation and has provided the following information about the four grades of apples: Price at Split-Off Pounds (per ib.) Grades Grade A Grade B Slices 9 Applesauce 1,500 4,000 ,000 $4.00 1.00 0.50 0.10 5,500 Total 20,000 Total Joint cost is $22,000. Required: e-at-split-off method. Round your allocation percentages to four decimal places 1. Allocate the joint cost to the four grades of apples and round the allocated costs to the nearest dollar Check My Work takeAssignment/take AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator and round the allocated costs to the nearest dollar Joint Cost Grades Allocation Grade A Grade B Slices Applesauce Total 2. What if the price at split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B apples? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar Joint Cost Grades Allocation Grade A Grade B Slices Applesauce Total Check My Work Previous Next