Good earth products produces orange juice and candied

Assignment Help Managerial Accounting

Reference no: EM13378457

Good Earth Products produces orange juice and candied orange peels. A 1,000 pound batch of oranges, costing $500, is transformed using labor of $50 into 100 pounds of orange peels and 300 pints of juice. The company has determined that the sales value of 100 pounds of peels at the split-off point is $350, and the value of a pint of juice (not pasteurized or bottled) is $0.040. Beyond the split-off point, the cost of the sugar-coating and packaging the 100 pounds of peels is $60. The cost of pasteurizing and packaging the 300 pints of juice is $250. A 100 pound box of candied peels is sold to commercial baking companies for $600. Each pint of juice is sold for $1.75.

Required:

a.) Allocate joint costs using the relative sales values at the split-off point, and calculate the profit per 100 pound box of sugar-coated peels and the profit per pint of juice. Round to the nearest dollar.

b.) What is the incremental benefit (cost) to the company of sugar-coating the peels rather than selling them in their condition at the split-off point?

c.) What is the incremental benefit (cost) to the company of pasteurizing and packaging a pint of juice rather than selling the juice at the split-off point?

Reference no: EM13378457

Questions Cloud

Ajack partnership manufactures jackhammers ajack : ajack partnership manufactures jackhammers. ajack partnership is looking for guidance in the variances of its standard

Preston concrete is a major supplier of concrete to : preston concrete is a major supplier of concrete to residential and commercial builders in the pacific northwest.nbsp

Five star tools is a small family-owned firm that : five star tools is a small family-owned firm that manufactures diamond-coated cutting tools chisels and saws used by

Don lieberman and associates a cpa firm uses job order : don lieberman and associates a cpa firm uses job order costing to capture the costs of its audit jobs. there were no

Good earth products produces orange juice and candied : good earth products produces orange juice and candied orange peels. a 1000 pound batch of oranges costing 500 is

Larkspur corp manufactures bird feeders it currently has : larkspur corp. manufactures bird feeders. it currently has two product lines the standard and the deluxe. larkspur has

Service food vendorralph newkirk is considering a bid for : service food vendorralph newkirk is considering a bid for the hot dog and soft drink concession at the 14 football

What is included in the genomic dna of prokaryotes and how : what is included in the genomic dna of prokaryotes and how do these elements differ from

Instructionsa enter the balances in ledger accounts allow : instructionsa enter the balances in ledger accounts. allow five lines for each account.b from the trial balance and the

User Account

All Pages