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Cost Accounting Question
Pepsi Beverages processes soft drinks and bottles it as Marinda, Seven up and Coke. During the year, the joint costs of processing the coffee were $450,000. There were no beginning or ending inventories. Production and sales value information were as follows:
Sales Value
Product
Cases
At Split-Off
Separable Costs
Selling Price
Marinda
200,000
$9 per case
$5.00 per case
$32 per case
Seven up
300,000
$8 per case
$3.00 per case
$30 per case
Coke
500,000
$7 per case
$2.00 per case
$20 per case
a. Allocate the joint costs using the physical output method.
b. Allocate the joint costs using sales value at split-off point method.
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