Question: please answer this question below 1. Cruella Co. bought coconut for $400,000 and then processes them into 2 identifiable products for $40,000. Those 2 identifiable

please answer this question below

1. Cruella Co. bought coconut for $400,000 and then processes them into

1. Cruella Co. bought coconut for $400,000 and then processes them into 2 identifiable products for $40,000. Those 2 identifiable products are 80,000 liters coconut water that can be sold for $6 per liter and 35,000 kilograms young coconut fruit can be sold for $3 per kg. Coconut water and fruit can be sold either directly or processed further into juice and grated coconut. The following information is related to both products. Juice Grated Coconut Output 95.000 70.000 Price/pcs $7 $5 Direct Labor cost $15,000 $10,000 Overhead cost $5,000 $6,000 All juice and grated coconut produced for the current period have been sold entirely. Calculate the allocation of joint cost and the gross profit for each product, using each joint cost allocation methods!

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!