Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 20X2, Husky Orchards processed 500,000 kilograms of apples. The joint costs of processing the apples were $2,400,000. Following the joint process, the separate products can be further processed with no loss of volume. There were no beginning inventories at the beginning of 20X2. Production and sales value information for 20X2 were as follows: A Number of Cases B Sales Value at Split-Off D Separable Final costs Selling Price Juice 100,000 $23 per case Sections Sauce 125,000 $20 per case 200,000 $ 10 per case $410,000 $28 per case $450,000 $ 26 per case $490,000 $14 per case REQUIRED: SHOW YOUR DETAILED CALCULATIONS 1. Assume that Husky Orchards uses the Net Realizable Value Method to allocate joint costs and processes all products to their final state. Allocate the joint costs among the joint products. 2. On January 1 of 20X3 a flood destroyed 20,000 cases of Juice and 15,000 cases of Sauce remaining in inventory. What is the value of the destroyed inventory? 20
Husky Orchards processes apples into apple juice, apple sections, and applesauce. During 20X2, Husky Orchards processed 500,000 kilograms of apples. The joint costs of processing the apples were $2,400,000. Following the joint process, the separate products can be further processed with no loss of volume. There were no beginning inventories at the beginning of 20X2. Production and sales value information for 20X2 were as follows: A Number of Cases B Sales Value at Split-Off D Separable Final costs Selling Price Juice 100,000 $23 per case Sections Sauce 125,000 $20 per case 200,000 $ 10 per case $410,000 $28 per case $450,000 $ 26 per case $490,000 $14 per case REQUIRED: SHOW YOUR DETAILED CALCULATIONS 1. Assume that Husky Orchards uses the Net Realizable Value Method to allocate joint costs and processes all products to their final state. Allocate the joint costs among the joint products. 2. On January 1 of 20X3 a flood destroyed 20,000 cases of Juice and 15,000 cases of Sauce remaining in inventory. What is the value of the destroyed inventory? 20
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...
Related questions
Question
Husky Orchards processes apples into apple juice, apple sections, and applesauce.
During 20X2, Husky Orchards processed 500,000 kilograms of apples. The joint costs
of processing the apples were $2,400,000. Following the joint process, the separate
products can be further processed with no loss of volume.
There were no beginning inventories at the beginning of 20X2.
Production and sales value information for 20X2 were as follows:
A
Number of
Cases
B
Sales Value
at Split-Off
D
Separable
Final
costs
Selling Price
Juice
100,000
$23 per case
Sections
Sauce
125,000
$20 per case
200,000 $ 10 per case
$410,000 $28 per case
$450,000 $ 26 per case
$490,000
$14 per case
REQUIRED: SHOW YOUR DETAILED CALCULATIONS
1.
Assume that Husky Orchards uses the Net Realizable Value Method to allocate
joint costs and processes all products to their final state. Allocate the joint costs
among the joint products.
2. On January 1 of 20X3 a flood destroyed 20,000 cases of Juice and 15,000
cases of Sauce remaining in inventory. What is the value of the destroyed
inventory?
20
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