Roget's Sugar Company buys raw sugar beets and sugar cane and processes it into three joint...

 

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Roget's Sugar Company buys raw sugar beets and sugar cane and processes it into three joint products: raw sugar (RS), liquid syrup (LS), and sweet pulp (SP). The raw sugar is further processed into refined white sugar (RWS) and sold to grocery chains and restaurants. The liquid syrup and sweet pulp are sold at the splitoff point without further processing to food processors who use them as raw materials in their operations. During the current month, sugar beets and cane costing $40,000 were processed at an additional cost of $90,000 into the three joint products. There were no beginning inventories of raw materials or work in process, and all raw material purchased this month was fully processed. Data regarding output and selling prices at the splitoff point are as follows: Product Quantity Selling Price per kg Produced at Splitoff Point 455 RS 80,000 $1.60 LS 100,000 $1.20 SP 50,000 $0.60 The raw sugar (RS) was processed into refined white sugar (RWS) at an additional cost of $41,600. This resulted in 75,000 kg of RWS which can be sold for $2.40/kg REQUIRED: Allocate the current month's joint costs to the products using: 1. Sales value at splitoff method. 2. Physical measures method (as produced at splitoff point). Constant Gross Margin Percentage NRV Method. Roget's Sugar Company buys raw sugar beets and sugar cane and processes it into three joint products: raw sugar (RS), liquid syrup (LS), and sweet pulp (SP). The raw sugar is further processed into refined white sugar (RWS) and sold to grocery chains and restaurants. The liquid syrup and sweet pulp are sold at the splitoff point without further processing to food processors who use them as raw materials in their operations. During the current month, sugar beets and cane costing $40,000 were processed at an additional cost of $90,000 into the three joint products. There were no beginning inventories of raw materials or work in process, and all raw material purchased this month was fully processed. Data regarding output and selling prices at the splitoff point are as follows: Product Quantity Selling Price per kg Produced at Splitoff Point 455 RS 80,000 $1.60 LS 100,000 $1.20 SP 50,000 $0.60 The raw sugar (RS) was processed into refined white sugar (RWS) at an additional cost of $41,600. This resulted in 75,000 kg of RWS which can be sold for $2.40/kg REQUIRED: Allocate the current month's joint costs to the products using: 1. Sales value at splitoff method. 2. Physical measures method (as produced at splitoff point). Constant Gross Margin Percentage NRV Method.

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Here are the calculations using the different allocation methods 1 Sales valu... View the full answer