Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the month were as follows: Product Units Produced Sales Value at Split-off Point Separable costs Sugar 15,000 $200,000 $60,000 Sugar Syrup 10,000 175,000 192,000 Fructose Syrup 5,000 125,000 96,000 Determine the amount of joint cost allocated to each product if the sales value at split-off method is used.
Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the month were as follows: Product Units Produced Sales Value at Split-off Point Separable costs Sugar 15,000 $200,000 $60,000 Sugar Syrup 10,000 175,000 192,000 Fructose Syrup 5,000 125,000 96,000 Determine the amount of joint cost allocated to each product if the sales value at split-off method is used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the month were as follows:
|
Product |
Units Produced |
Sales Value at Split-off Point |
Separable costs |
|
Sugar |
15,000 |
$200,000 |
$60,000 |
|
Sugar Syrup |
10,000 |
175,000 |
192,000 |
|
Fructose Syrup |
5,000 |
125,000 |
96,000 |
Determine the amount of joint cost allocated to each product if the sales value at split-off method is used.
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