Reference no: EM131828738

Questions -

Q1. Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X2, the joint costs of processing the tomatoes were $420,000. 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
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

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.

Q2. Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:

Product	Units Produced	Sales Value at Splitoff Point
Turpentine	6,000 liters	$60,000
Paint thinner	6,000 liters	50,000
Spot remover	3,000 liters	25,000

Determine the amount of joint cost allocated to each product if the physical-measure method is used.

Q3. Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows:

		Sales Value at
Product	Board feet	Splitoff Point	Ending Inventory
2 x 4's	6,000,000	$0.30 per board foot	500,000 bdft.
2 x 6's	3,000,000	0.40 per board foot	250,000 bdft.
4 x 4's	2,000,000	0.45 per board foot	100,000 bdft.
Slabs	1,000,000	0.10 per board foot	50,000 bdft.

Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.