Novak & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Novak currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti sauce. The specifics on each of these products for one month are as follows. Joint processing costs Quantity of tomato juice produced Value of tomato juice Quantity of tomato puree produced Additional cost to make spaghetti sauce Final sales value of spaghetti sauce (a) $154,000 Allocated joint costs S 10,000 gallons $3 16,000 pounds $18,000 $196,000 Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) Juice per gallon Purce/Sauce
Novak & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately identifiable. Novak currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti sauce. The specifics on each of these products for one month are as follows. Joint processing costs Quantity of tomato juice produced Value of tomato juice Quantity of tomato puree produced Additional cost to make spaghetti sauce Final sales value of spaghetti sauce (a) $154,000 Allocated joint costs S 10,000 gallons $3 16,000 pounds $18,000 $196,000 Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.2516 and final answers to 2 decimal places, e.g. 15.25.) Juice per gallon Purce/Sauce
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Novak & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large
crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at which point the juice and the pulp are separately
identifiable. Novak currently processes the pulp further to transform it into his great-great-grandmother's secret-recipe spaghetti
sauce. The specifics on each of these products for one month are as follows.
Joint processing costs
Quantity of tomato juice produced
Value of tomato juice
Quantity of tomato puree produced
Additional cost to make spaghetti sauce
Final sales value of spaghetti sauce
(a)
Allocated joint costs
$154,000
Juice
10,000 gallons
$3 per gallon
Using the NRV method for allocating joint costs, specify how much joint cost will be allocated to the juice and to the
puree/spaghetti sauce. (Round proportion to 4 decimal places, e.g. 0.25 16 and final answers to 2 decimal places, e.g.
15.25.)
16,000 pounds
$18,000
$196,000
Puree/Sauce
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