California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Number 1 Number 2 Number 3 Total Sales $ 570,000 342,000 228,000 $ 1,140,000 The company incurred the following joint costs for the year. Tree pruning and care. $ 570,000 190,000 Pickup, sorting, and grading quired: Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value.
California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Number 1 Number 2 Number 3 Total Sales $ 570,000 342,000 228,000 $ 1,140,000 The company incurred the following joint costs for the year. Tree pruning and care. $ 570,000 190,000 Pickup, sorting, and grading quired: Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
California Orchards reports the following sales data for the year ended December 31.
Grade of Walnuts
Number 1
Number 2
Number 3
Total
Sales
$ 570,000
342,000
228,000
$ 1,140,000
The company incurred the following joint costs for the year.
$ 570,000
190,000
Totals
Tree pruning and care
Pickup, sorting, and grading
Required:
1. Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value.
Allocation of joint costs on the basis of sales values.
Allocation Base
Grade
Numbers
Number 1
Number 2
Number 3
Percent of Allocation Base
Numerator Denominator
% of Total
x Indirect Cost Allocated Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41476158-3455-46b8-90cd-c93ebf8f3cd1%2Fadac3b75-1c3f-43c7-9422-a9ba0d0a496a%2Ffba56pu_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
California Orchards reports the following sales data for the year ended December 31.
Grade of Walnuts
Number 1
Number 2
Number 3
Total
Sales
$ 570,000
342,000
228,000
$ 1,140,000
The company incurred the following joint costs for the year.
$ 570,000
190,000
Totals
Tree pruning and care
Pickup, sorting, and grading
Required:
1. Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value.
Allocation of joint costs on the basis of sales values.
Allocation Base
Grade
Numbers
Number 1
Number 2
Number 3
Percent of Allocation Base
Numerator Denominator
% of Total
x Indirect Cost Allocated Cost
Transcribed Image Text:2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs.
Grade
Number 1
Number 2
Number 3
Total
Gross Profit
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