Business, 26.03.2021 01:00 annikafischer
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 2018, the joint costs of processing the tomatoes were $420,000. There was no beginning inventory for the summer. Production and sales information for the summer is as follows:
Product Cases Sales Value at Splitoff Point Separable Costs Selling Price
Catsup 100,000 $6 per case $3.00 per case $28 per case
Juice 150,000 8 per case 5.00 per case 25 per case
Canned 200,000 5 per case 2.50 per case 10 per case
Required:
Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product.
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