Jennifer owns a small apple orchard and press operation. After picking and selling the high-grade apples in their fresh state, she presses the remaining apples into juice. This process also yields pomace (a pulp like products. There is a market for both the juice and the pomace immediately after this joint pressing process is complete. The joint processing costs are $31,000 Both of these products can be processed further, the juice can be turned into hard cider, while the pomace can be turned into jam. The values of each product at different stages of completion, along with the additional costs that will be incurred if the products are processed further, are as follows. Apple juice/hard cider Apple pomace/jam (a) Sales Value at Split-Off $38,710 10.290 Allocated joint costs Additional Processing Cost $15,520 $ 4,680 Final Sales Value $108,000 I Jenniter uses the sales value at split-off method to allocate the joint costs, how much will be allocated to each product? (Round proportion to 2 decimal places, eg 0.25 and final answers to O decimal places, eg 5.125) Apple Juice/Hard Cider 21,000 Apple Pomace/lam

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Cop

Jennifer owns a small apple orchard and press operation. After picking and selling the high-grade apples in their fresh state, she
presses the remaining apples into juice. This process also yields pomace (a pulp like product). There is a market for both the juice and
the pomace immediately after this joint pressing process is complete. The joint processing costs are $31,000. Both of these products
can be processed further. the juice can be turned into hard cider, while the pomace can be turned into jam. The values of each product
at different stages of completion, along with the additional costs that will be incurred if the products are processed further, are as
follows.
Apple juice/hard cider
Apple pomace/jam
(a)
Sales Value
at Split-Off
$38,710
10,290
Allocated joint costs
Additional
Processing Cost
$15,520
4,680
$
If Jennifer uses the sales value at split-off method to allocate the joint costs, how much will be allocated to each product? (Round
proportion to 2 decimal places, eg. 0.25 and final answers to 0 decimal places, eg. 5,125)
Apple Juice/Hard Cider
Final Sales
Value
$108,000
5
21,000
4
Apple Pomace/lam
Transcribed Image Text:Jennifer owns a small apple orchard and press operation. After picking and selling the high-grade apples in their fresh state, she presses the remaining apples into juice. This process also yields pomace (a pulp like product). There is a market for both the juice and the pomace immediately after this joint pressing process is complete. The joint processing costs are $31,000. Both of these products can be processed further. the juice can be turned into hard cider, while the pomace can be turned into jam. The values of each product at different stages of completion, along with the additional costs that will be incurred if the products are processed further, are as follows. Apple juice/hard cider Apple pomace/jam (a) Sales Value at Split-Off $38,710 10,290 Allocated joint costs Additional Processing Cost $15,520 4,680 $ If Jennifer uses the sales value at split-off method to allocate the joint costs, how much will be allocated to each product? (Round proportion to 2 decimal places, eg. 0.25 and final answers to 0 decimal places, eg. 5,125) Apple Juice/Hard Cider Final Sales Value $108,000 5 21,000 4 Apple Pomace/lam
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education