Bonita & 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. Bonita 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 $164,000 3,000 gallons $9 per gallon 14,000 pounds $21,000 $218,000
Bonita & 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. Bonita 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 $164,000 3,000 gallons $9 per gallon 14,000 pounds $21,000 $218,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Bonita 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 clam-flavored tomato juice for an additional processing cost of $1,600.
With no change in total volume, this flavored juice could sell for $30,000. Given this new information, recalculate the joint cost
allocations for both joint products under the NRV method. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2
decimal places, e.g. 15.25.)
Allocated joint costs
$
Juice
LA
Puree](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87a4fec-84a6-47f1-ad5d-e0f297dacf37%2F31e083ac-0dc0-4370-a501-f234719cee72%2F0fsbtf_processed.png&w=3840&q=75)
Transcribed Image Text:Bonita 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 clam-flavored tomato juice for an additional processing cost of $1,600.
With no change in total volume, this flavored juice could sell for $30,000. Given this new information, recalculate the joint cost
allocations for both joint products under the NRV method. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2
decimal places, e.g. 15.25.)
Allocated joint costs
$
Juice
LA
Puree
![Bonita & 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. Bonita 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
$164,000
3,000
$9
14,000 pounds
$21,000
$218,000
gallons
per gallon](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87a4fec-84a6-47f1-ad5d-e0f297dacf37%2F31e083ac-0dc0-4370-a501-f234719cee72%2Froxo3ug_processed.png&w=3840&q=75)
Transcribed Image Text:Bonita & 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. Bonita 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
$164,000
3,000
$9
14,000 pounds
$21,000
$218,000
gallons
per gallon
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