Question: Skysong recently became aware of consumer preferences for flavored tomato juice. With some slight modifications to his facility, he could process the tomato juice further
Skysong 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 clamflavored tomato juice for an additional processing cost of $ With no change in total volume, this flavored juice could sell for $ Given this new information, recalculate the joint cost allocations for both joint products under the NRV method. Round proportion to decimal places, eg and final answers to decimal places, eg
Juice
Puree
Allocated joint costs
$ $
Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the pureespaghetti sauce. Round proportion to decimal places, eg and final answers to decimal places, eg
PureeSauce
Allocated joint costs
$
Skysong & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases larg crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Skysong currently processes the pulp further to transform it into his greatgreatgrandmother's secretrecipe spaghett sauce. The specifics on each of these products for one month are as follows.
tableJoint processing costs,$
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