Required: Compute each of the following amounts. 1. The number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, and animal feed. 2. The net realizable value at the split-off point of the three main products. 3. The amount of the cost of the Cutting Department allocated to each of the three main products.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Top Quality Fruit Company, based on Oahu, grows, processes, cans, and sells three main pineapple products: sliced, crushed, and
Juice. The outside skin is cut off in the Cutting Department and processed as animal feed. The feed is treated as a by-product. The
company's production process is as follows:
Pineapples first are processed in the Cutting Department. The pineapples are washed and the outside skin is cut away. Then the
pineapples are cored and trimmed for slicing. The three main products (sliced, crushed, juice) and the by-product (animal feed) are
recognizable after processing in the Cutting Department. Each product then is transferred to a separate department for final
processing.
• The trimmed pineapples are sent to the Slicing Department, where the pineapples are sliced and canned. Any Juice generated
during the slicing operation is packed in the cans with the slices.
• The pieces of pineapple trimmed from the frult are diced and canned in the Crushing Department. Again, the juice generated during
this operation is packed in the can with the crushed pineapple.
• The core and surplus pineapple generated from the Cutting Department are pulverized into a liquid in the Juicing Department.
There is an evaporation loss equal to 4 percent of the weight of the good output produced in this department that occurs as the
Julces are heated.
• The outside skin is chopped into animal feed in the Feed Department.
Top Quality Frult Company uses the net-realizable-value method to assign the costs of the joint process to its main products. The net
realizable value of the by-product is subtracted from the joint cost before the allocation.
A total of 170,000 pounds were entered into the Cutting Department during June. The following schedule shows the costs incurred in
each department, the proportion by weight transferred to the four final processing departments, and the selling price of each end
product.
Department
Cutting
slicing
Crushing
Juicing
Animal feed
Total
Required 1
Processing Data and Costs for June
Proportion of Product by
Weight Transferred to
Departments
Required:
Compute each of the following amounts.
1. The number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, and animal feed.
2. The net realizable value at the split-off point of the three main products.
3. The amount of the cost of the Cutting Department allocated to each of the three main products.
Product
Costs
Incurred
$62,000
6,700
12,580
5,250
900
$87,430
Complete this question by entering your answers in the tabs below.
Slices
Crushed
Required 2 Required 3
Compute the number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, and
animal feed.
Juice
Animal feed
37%
26
26
11
100%
Selling Price per
Pound of Final Product
None
$1.60
1.55
0.50
0.25
Net Pounds
Transcribed Image Text:Top Quality Fruit Company, based on Oahu, grows, processes, cans, and sells three main pineapple products: sliced, crushed, and Juice. The outside skin is cut off in the Cutting Department and processed as animal feed. The feed is treated as a by-product. The company's production process is as follows: Pineapples first are processed in the Cutting Department. The pineapples are washed and the outside skin is cut away. Then the pineapples are cored and trimmed for slicing. The three main products (sliced, crushed, juice) and the by-product (animal feed) are recognizable after processing in the Cutting Department. Each product then is transferred to a separate department for final processing. • The trimmed pineapples are sent to the Slicing Department, where the pineapples are sliced and canned. Any Juice generated during the slicing operation is packed in the cans with the slices. • The pieces of pineapple trimmed from the frult are diced and canned in the Crushing Department. Again, the juice generated during this operation is packed in the can with the crushed pineapple. • The core and surplus pineapple generated from the Cutting Department are pulverized into a liquid in the Juicing Department. There is an evaporation loss equal to 4 percent of the weight of the good output produced in this department that occurs as the Julces are heated. • The outside skin is chopped into animal feed in the Feed Department. Top Quality Frult Company uses the net-realizable-value method to assign the costs of the joint process to its main products. The net realizable value of the by-product is subtracted from the joint cost before the allocation. A total of 170,000 pounds were entered into the Cutting Department during June. The following schedule shows the costs incurred in each department, the proportion by weight transferred to the four final processing departments, and the selling price of each end product. Department Cutting slicing Crushing Juicing Animal feed Total Required 1 Processing Data and Costs for June Proportion of Product by Weight Transferred to Departments Required: Compute each of the following amounts. 1. The number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, and animal feed. 2. The net realizable value at the split-off point of the three main products. 3. The amount of the cost of the Cutting Department allocated to each of the three main products. Product Costs Incurred $62,000 6,700 12,580 5,250 900 $87,430 Complete this question by entering your answers in the tabs below. Slices Crushed Required 2 Required 3 Compute the number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, and animal feed. Juice Animal feed 37% 26 26 11 100% Selling Price per Pound of Final Product None $1.60 1.55 0.50 0.25 Net Pounds
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