Top Quality Fruit Company, based on Oahu, grows, processes, cans, and sells three main pineapple products: sliced, crushed, andJuice. The outside skin is cut off in the Cutting Department and processed as animal feed. The feed is treated as a by-product. Thecompany'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 thepineapples are cored and trimmed for slicing. The three main products (sliced, crushed, juice) and the by-product (animal feed) arerecognizable after processing in the Cutting Department. Each product then is transferred to a separate department for finalprocessing.• The trimmed pineapples are sent to the Slicing Department, where the pineapples are sliced and canned. Any Juice generatedduring 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 duringthis 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 theJulces 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 netrealizable 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 ineach department, the proportion by weight transferred to the four final processing departments, and the selling price of each endproduct.DepartmentCuttingslicingCrushingJuicingAnimal feedTotalRequired 1Processing Data and Costs for JuneProportion of Product byWeight Transferred toDepartmentsRequired: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.ProductCostsIncurred$62,0006,70012,5805,250900$87,430Complete this question by entering your answers in the tabs below.SlicesCrushedRequired 2 Required 3Compute the number of pounds of pineapple that result as output for pineapple slices, crushed pineapple, pineapple juice, andanimal feed.JuiceAnimal feed37%262611100%Selling Price perPound of Final ProductNone$1.601.550.500.25Net Pounds

Costs are gathered by department rather than by work in process costing.. This approach is often employed in businesses where production is done in a succession of steps. As the product moves through the manufacturing process, every team adds value to it.In a multi-department production setting, the expenses of one department is often transferred to another. The expenditures incurred in one area are passed on to the following departments until the final product is produced.Determination the amount of pounds of pineapple produced by pineapple slices, crushed pineapple, pineapple juice, and animal feed:ProductTotal poundsProportionTotal poundsPounds lost in processing Net poundsSlices$170,00037%$62,900$62,900Crushed$170,00026%$44,200$44,200Juice$170,00026%$44,200$1,700$42,500Animal feed$170,00011%$18,700$18,700Total$170,000$1,700$168,300Calculation of the net realizable value of the three primary products at the split-off point.Net realizable valueProductNet poundsSelling priceSales revenueSeparable costsAmounts%Slices$62,900160%$100,640$6,700$93,94055Crushed$44,200155%$68,150$12,580$55,57033Juice$42,50050%$21,250$5,550$15,7009Total$190,040$24,830$165,210100Calculation the net realizable value of the three primary products at the split-off point.ProductNet realizable value percentageJoint costAllocation of joint costSlices55%$61,200$33,660Crushed33%$61,200$20,196Juice9%$61,200$5,508Total$59,364ParticularsAmountsAmountsCutting department$62,000Sales value$1,700Less: Separable costs($900)Less: Net realizable value($800)Joint cost$61,200Part (1): ProductNet poundsSlices$62,900Crushed$44,200Juice$42,500Total $168,300Part (2): Net realizable valueProductAmounts%Slices$93,94055Crushed$55,57033Juice$15,7009Total$165,210100Part (3): ProductAmountSlices$33,660Crushed$20,196Juice$5,508Total$59,364

Business

Accounting

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.

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

Section: Chapter Questions

Problem 1Q

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