Question $17$ of $17$

$\frac{1\mathrm{.}25}{3}$

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Splish & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Splish currently processes the pulp further to transform it into his great$-$great$-$grandmother's secret$-$recipe spaghetti sauce. The specifics on each of these products for one month are as follows.

Joint processing costs

Quantity of tomato juice produced

Value of tomato juice

Quantity of tomato puree produced

Additional cost to make spaghetti sauce

Final sales value of spaghetti sauce

$$154,000$

$7,000$ gallons

$$2$ pergallon

$16,000$ pounds

$$21,000$

$$219,000$

$($a$)$

Your answer is correct.

Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree$/$spaghetti sauce. $($Round proportion to $4$ decimal places, e$.$g$.0\mathrm{.}2516$ and final answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Allocated joint costs $\frac{\text{J}\text{u}\text{i}\text{c}\text{e}}{\text{\$}}\frac{\text{P}\text{u}\text{r}\text{e}\frac{e}{S}\text{a}\text{u}\text{c}\text{e}}{\text{\$}}$

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Solution

Attempts: $2$ of $2$ used

$($b$)$

Splish recently became aware of consumer preferences for flavored tomato juice. With some slight modifications to his facility, he could process the tomato juice further and turn it into clam$-$flavored tomato juice for an additional processing cost of $$1,400.$ With no change in total volume, this flavored juice could sell for $$50,000.$ Given this new information, recalculate the joint cost

Splish recently became aware of consumer preferences for flavored tomato juice. With some slight modifications to his facility, he could process the tomato juice further and turn it into clam$-$flavored tomato juice for an additional processing cost of $$1,400.$ With no change in total volume, this flavored juice could sell for $$50,000.$ Given this new information, recalculate the joint cost allocations for both joint products under the NRV method. $($Round proportion to $4$ decimal places, e$.$g$.0\mathrm{.}2516$ and final answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

$\backslash$table$[[,$Juice,Puree$],[$Allocated joint costs,$$,$$