Ginny decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 160 pounds of honey and 40 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound. (a) How much of the joint harvesting cost will Ginny allocate to each product if she uses the sales value at split-off method? (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 5,125.25.) Honeycomb Allocated joint costs $ Honey $

Ginny decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 160 pounds of honey and 40 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound. (a) How much of the joint harvesting cost will Ginny allocate to each product if she uses the sales value at split-off method? (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 5,125.25.) Honeycomb Allocated joint costs $ Honey $

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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Question

Ginny decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the
original bee colony, and her own time and equipment. This past year, she harvested 160 pounds of honey and 40 pounds of honeycomb
for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz.
jar. The honeycomb can be sold as well, for $3 per pound.
(a)
How much of the joint harvesting cost will Ginny allocate to each product if she uses the sales value at split-off method? (Round
proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 5,125.25.)
Honeycomb
Allocated joint costs
$
Honey
$

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