Georgia Co. raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to products based on bushels of output. The $540,000 joint cost for one harvest yielded the following output quantities. Product Output in Bushels Premium 26,400 69,696 Good Fair The joint process also created a by-product that had a total net realizable value of $104,000. The company records the by- product inventory as a reduction to Work in Process Inventory-Joint Products. Allocate the joint cost to the joint products using bushels of output. Premium $ Good Fair Total 9,504 5
Georgia Co. raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to products based on bushels of output. The $540,000 joint cost for one harvest yielded the following output quantities. Product Output in Bushels Premium 26,400 69,696 Good Fair The joint process also created a by-product that had a total net realizable value of $104,000. The company records the by- product inventory as a reduction to Work in Process Inventory-Joint Products. Allocate the joint cost to the joint products using bushels of output. Premium $ Good Fair Total 9,504 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:By-product and cost allocation
Georgia Co. raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to
products based on bushels of output. The $540,000 joint cost for one harvest yielded the following output quantities.
Product Output in Bushels
Premium
26,400
69,696
9,504
Good
Fair
The joint process also created a by-product that had a total net realizable value of $104,000. The company records the by-
product inventory as a reduction to Work in Process Inventory-Joint Products. Allocate the joint cost to the joint products
using bushels of output.
Premium S
Good
Fair
Total
$
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