Linda works at the cranberry plant in town, which uses a common process of cleaning, sorting,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Linda works at the cranberry plant in town, which uses a common process of cleaning, sorting, flash freezing, and crushing the berries. At the end of this process, which costs $36,000, cranberry juice and cranberry puree are available. The cranberry puree is then made into sauce, at an additional cost of $1.50 per pound, while the cranberry juice is further processed into syrup, at an additional cost of $2.00 per gallon. There is no change in volume during the additional processing. Additional information is as follows. Yield from joint process Sales prices at split-off point Sales prices after further processing (a) Using the NRV method, allocate the joint costs to each product, and determine gross margin amounts and percentages for each if 80% of each final product is sold. (Round proportion to 4 decimal places, e.g. 0.2512. Round allocated joint costs to 0 decimal places, e.g. 125, gross margin to 2 decimal places, e.g. 15.25 and gross margin percentage to 1 decimal place, e.g. 15.2%.) Allocated joint costs Gross margin 15,000 pounds of puree 7.500 gallons of juice $2.00 per pound of puree $4.00 per gallon of juice $4.00 per pound of sauce $7.50 per gallon of syrup Gross margin percentages Puree/Sauce Juice/Syrup Linda works at the cranberry plant in town, which uses a common process of cleaning, sorting, flash freezing, and crushing the berries. At the end of this process, which costs $36,000, cranberry juice and cranberry puree are available. The cranberry puree is then made into sauce, at an additional cost of $1.50 per pound, while the cranberry juice is further processed into syrup, at an additional cost of $2.00 per gallon. There is no change in volume during the additional processing. Additional information is as follows. Yield from joint process Sales prices at split-off point Sales prices after further processing (a) Using the NRV method, allocate the joint costs to each product, and determine gross margin amounts and percentages for each if 80% of each final product is sold. (Round proportion to 4 decimal places, e.g. 0.2512. Round allocated joint costs to 0 decimal places, e.g. 125, gross margin to 2 decimal places, e.g. 15.25 and gross margin percentage to 1 decimal place, e.g. 15.2%.) Allocated joint costs Gross margin 15,000 pounds of puree 7.500 gallons of juice $2.00 per pound of puree $4.00 per gallon of juice $4.00 per pound of sauce $7.50 per gallon of syrup Gross margin percentages Puree/Sauce Juice/Syrup
Expert Answer:
Answer rating: 100% (QA)
To allocate the joint costs using the NRV Net Realizable Value method we need to determine the sales ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
In Table 4. 4, Professor Kip Viscusi estimates that the cost per life saved by current government risk-reducing programs ranges from $100,000 for unvented space heaters to $72 billion for a proposed...
-
A large refrigeration plant is to be maintained at -15C, and it requires refrigeration at a rate of 100 kW. The condenser of the plant is to be cooled by liquid water, which experiences a temperature...
-
For the past few years, your client, Central Medical Group (CMG), has operated a small medical practice. CMG's current annual revenues are $420,000. Because the accountant has been spending more and...
-
Triple-bottom-line reporting, based on the notion of ecologically sustainable development, aims to report on financial, social and ecological positions and impacts. Is ecological accounting and...
-
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded...
-
Can you work up a consolidation worksheet for 2021? House Corporation has been operating profitably since its creation in 1960. At the beginning of 2019, House acquired a 70 percent ownership in...
-
Orion Controls is a leading manufacturer of industrial valve systems, and Nathan Armstrong, head of Marketing, had been contacted by Andre Gide, EVP of Avion Chemical to place an order for 50 of...
-
c) Complete the table below for the mean and standard deviation of the given portfolios. (10 marks) Hint: Use the weights in decimals in the calculations and then convert your answers into...
-
Describe the dispositional options for the marital residence.
-
Write four scenarios of AnyAccount stability pattern.
-
Broadly defined, what is jurisdiction?
-
The Adoption and Safe Families Act has shifted the focus away from family reunification in favor of fast-tracking permanency planning for children in the foster care system. As a result of this shift...
-
What is the jurisdictional basis for dissolving a marriage?
-
In the machine with homogeneous limbs, the L-length 2nd limb is under the effect of Mah moment, and limb 4 is under the effect of horizontal F force. q is the main coordinate, and r and x are the...
-
$10,000 was borrowed at 3.5% on July 17. The borrower repaid $5000 on August 12, and $2000 on September 18. What final payment is required on November 12 to fully repay the loan?
-
What is the human resources model view of motivation?
-
How does participation in the budgeting process differ from consultation?
-
Profitability of orders and opportunity cost Dawson Company produces and sells 80,000 boxes of specialty foods each year. Each box contains the same assortment of food. The company has computed the...
-
What is a wave equation? What is a traveling-wave solution?
-
Fill in the Blank. In the wave-solution \(w(x, t)=w_{1}(x-c t)+w_{2}(x+c t)\), the first term represents the wave that propagates in the __________ directions of \(x\). conditions
-
Find the time it takes for a transverse wave to travel along a transmission line from one tower to another one \(300 \mathrm{~m}\) away. Assume the horizontal component of the cable tension as 30,000...
Study smarter with the SolutionInn App