Question: Please pay attention to notes below the joint cost allocation. The joint cost allocation DOES NOT equal 21000. Allocating Joint Costs Using the Weighted Average


Please pay attention to notes below the joint cost allocation. The joint cost allocation DOES NOT equal 21000.
Allocating Joint Costs Using the Weighted Average 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 weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples: Total joint cost is $21,000
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