Lisa owns a small apple orchard and press operation. After picking and selling the high-grade apples in their fresh state, she pressesthe remaining apples into juice. This process also yields pomace (a pulp like product). There is a market for both the juice and thepomace immediately after this joint pressing process is complete. The joint processing costs are $32,000. Both of these products canbe processed further: the juice can be turned into hard cider, while the pomace can be turned into jam. The values of each product atdifferent stages of completion, along with the additional costs that will be incurred if the products are processed further, are asfollows.Apple juice/hard ciderApple pomace/jam(a)Sales Valueat Split-OffAdditionalProcessing CostFinal SalesValue$39,950$15,132$93,0007.0505.16820,000If Lisa uses the sales value at split-off method to allocate the joint costs, how much will be allocated to each product? (Round If Lisa uses the NRV method to allocate joint costs, how much will be allocated to each product? (Round proportion to 2 decimalplaces, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)Allocated joint costs$Apple Juice/Hard CiderApple Pomace/Jam$

a. Allocation of joint costs using sales value at split-off point method: Apple Juice/ Hard…

Answered: Lisa owns a small apple orchard and…

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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Please show work and explanations on how you got your answers.
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