Spuds Inc. manufacturers potato products from fresh potatoes as part of a joint production process. The potatoes are sorted by quality to manufacture three products: dried potatoes, hashbrowns, and flaked potatoes. To allocate the costs to process the potatoes, Spuds calculates the total sales price at the point when potatoes are sorted to make the three products. The relative sales price for each product is calculated as a percentage of total sales price for all products multiplied by the total joint costs.]

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Spuds Incs Joint Cost Allocation Method Spuds Inc uses the sales value at the splitoff point method to allocate joint costs to their potato products d... View the full answer