Alpine Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer, the joint costs of processing the tomatoes were $480,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer were as follows: Product Ketchup Juice Canned Cases 110,000 175,000 220,000 Additional costs Per Case 3.25 6.50 2.75 Selling Price Per case 32.00 28.00 15.00 Required: a. Determine the amount allocated to each product if the estimated net realizable value method is used. b. Determine the amount allocated to each product if the physical units method is used.
Alpine Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer, the joint costs of processing the tomatoes were $480,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer were as follows: Product Ketchup Juice Canned Cases 110,000 175,000 220,000 Additional costs Per Case 3.25 6.50 2.75 Selling Price Per case 32.00 28.00 15.00 Required: a. Determine the amount allocated to each product if the estimated net realizable value method is used. b. Determine the amount allocated to each product if the physical units method is used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Alpine Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the
summer, the joint costs of processing the tomatoes were $480,000. There was no beginning or ending
inventories for the summer. Production and sales value information for the summer were as follows:
Product
Ketchup
Juice
Canned
Cases
110,000
175,000
220,000
Additional costs
Per Case
3.25
6.50
2.75
Selling Price
Per case
32.00
28.00
15.00
Required:
a. Determine the amount allocated to each product if the estimated net realizable value method is used.
b. Determine the amount allocated to each product if the physical units method is used.
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