Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 20X2, Husky Orchards processed 500,000 kilograms of apples. The joint costs of processing the apples were $2,400,000. Following the joint process, the separate products can be further processed with no loss of volume. There were no beginning inventories at the beginning of 20X2. Production and sales value information for 20X2 were as follows: A Number of Cases B Sales Value at Split-Off D Separable Final costs Selling Price Juice 100,000 $23 per case Sections Sauce 125,000 $20 per case 200,000 $ 10 per case $410,000 $28 per case $450,000 $ 26 per case $490,000 $14 per case REQUIRED: SHOW YOUR DETAILED CALCULATIONS 1. Assume that Husky Orchards uses the Net Realizable Value Method to allocate joint costs and processes all products to their final state. Allocate the joint costs among the joint products. 2. On January 1 of 20X3 a flood destroyed 20,000 cases of Juice and 15,000 cases of Sauce remaining in inventory. What is the value of the destroyed inventory? 20
Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 20X2, Husky Orchards processed 500,000 kilograms of apples. The joint costs of processing the apples were $2,400,000. Following the joint process, the separate products can be further processed with no loss of volume. There were no beginning inventories at the beginning of 20X2. Production and sales value information for 20X2 were as follows: A Number of Cases B Sales Value at Split-Off D Separable Final costs Selling Price Juice 100,000 $23 per case Sections Sauce 125,000 $20 per case 200,000 $ 10 per case $410,000 $28 per case $450,000 $ 26 per case $490,000 $14 per case REQUIRED: SHOW YOUR DETAILED CALCULATIONS 1. Assume that Husky Orchards uses the Net Realizable Value Method to allocate joint costs and processes all products to their final state. Allocate the joint costs among the joint products. 2. On January 1 of 20X3 a flood destroyed 20,000 cases of Juice and 15,000 cases of Sauce remaining in inventory. What is the value of the destroyed inventory? 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Husky Orchards processes apples into apple juice, apple sections, and applesauce.
During 20X2, Husky Orchards processed 500,000 kilograms of apples. The joint costs
of processing the apples were $2,400,000. Following the joint process, the separate
products can be further processed with no loss of volume.
There were no beginning inventories at the beginning of 20X2.
Production and sales value information for 20X2 were as follows:
A
Number of
Cases
B
Sales Value
at Split-Off
D
Separable
Final
costs
Selling Price
Juice
100,000
$23 per case
Sections
Sauce
125,000
$20 per case
200,000 $ 10 per case
$410,000 $28 per case
$450,000 $ 26 per case
$490,000
$14 per case
REQUIRED: SHOW YOUR DETAILED CALCULATIONS
1.
Assume that Husky Orchards uses the Net Realizable Value Method to allocate
joint costs and processes all products to their final state. Allocate the joint costs
among the joint products.
2. On January 1 of 20X3 a flood destroyed 20,000 cases of Juice and 15,000
cases of Sauce remaining in inventory. What is the value of the destroyed
inventory?
20
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education