Compute the amount allocated to each product

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Reference no: EM131810035

Problem

The Canning Company processes A, B, and C. During the summer of 2011, the joint costs of processing were $900,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer is as follows:

Product

Cases

Sales Value at Splitoff Point

Separable Costs

Selling Price

A

200,000

$6 per case

$3.00 per case

$28 per case

B

350,000

8 per case

5.00 per case

25 per case

C

400,000

5 per case

2.50 per case

10 per case

Question: 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.

Reference no: EM131810035

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