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Blue & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Blue currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti sauce. The specifics on each of these products for one month are as follows. Joint processing costs Quantity of tomato juice produced Value of tomato juice Quantity of tomato puree produced Additional cost to make spaghetti sauce Final sales value of spaghetti sauce (a) Allocated joint costs $169,000 $ 9,000 gallons $7 Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) per gallon 16,000 pounds $10,000 $207,000 Juice $ Puree/Sauce

Blue & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Blue currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti sauce. The specifics on each of these products for one month are as follows. Joint processing costs Quantity of tomato juice produced Value of tomato juice Quantity of tomato puree produced Additional cost to make spaghetti sauce Final sales value of spaghetti sauce (a) Allocated joint costs $169,000 $ 9,000 gallons $7 Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) per gallon 16,000 pounds $10,000 $207,000 Juice $ Puree/Sauce

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Blue currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti sauce. The specifics on each of these products for one month are as follows. Joint processing costs Quantity of tomato juice produced Value of tomato juice Quantity of tomato puree produced Additional cost to make spaghetti sauce Final sales value of spaghetti sauce (a) Allocated joint costs $ $169,000 9,000 $7 16,000 pounds $10,000 $207,000 Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) Juice eTextbook and Media gallons per gallon $ Puree/Sauce
Transcribed Image Text:Blue & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Blue currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti sauce. The specifics on each of these products for one month are as follows. Joint processing costs Quantity of tomato juice produced Value of tomato juice Quantity of tomato puree produced Additional cost to make spaghetti sauce Final sales value of spaghetti sauce (a) Allocated joint costs $ $169,000 9,000 $7 16,000 pounds $10,000 $207,000 Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) Juice eTextbook and Media gallons per gallon $ Puree/Sauce
Analyze each of the proposals against the current situation to determine if it will help Robert achieve his profit goal. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 2 decimal places, e.g. 5,125.25.) Option 1 Option 2 Option 3 $ $ Net benefit $ Option 4 $ Operating Income Assuming that Blue could otherwise sell the tomato puree as-is for $147,000 (instead of turning it into spaghetti sauce), would you recommend that he process both of these products past the split-off point? Show how much better or worse off Blue would be if the puree and the juice are both processed further. Blue & Sons is therefore point. Juice $ by a total $ Puree by processing both products beyond the split-off
Transcribed Image Text:Analyze each of the proposals against the current situation to determine if it will help Robert achieve his profit goal. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 2 decimal places, e.g. 5,125.25.) Option 1 Option 2 Option 3 $ $ Net benefit $ Option 4 $ Operating Income Assuming that Blue could otherwise sell the tomato puree as-is for $147,000 (instead of turning it into spaghetti sauce), would you recommend that he process both of these products past the split-off point? Show how much better or worse off Blue would be if the puree and the juice are both processed further. Blue & Sons is therefore point. Juice $ by a total $ Puree by processing both products beyond the split-off
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