Bramble & 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. Bramble 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 $162,000 7,000 gallons $6 per gallon 16,000 pounds $21,000 $218,000

Bramble & 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. Bramble 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 $162,000 7,000 gallons $6 per gallon 16,000 pounds $21,000 $218,000

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Bramble & 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. Bramble
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.
Burs
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
$162,000
7.000 gallons
Alay!
$6 per gallon
16,000 pounds
$21.000
$218,000

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.)
Allocated joint costs $
Juice
h
LA
Puree/Sauce

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