Solution-How much of the joint costs should be allocated

How much of the joint costs should be allocated

Assignment Help Managerial Accounting

Reference no: EM132804376

A vegetable processor that purchases vegetables from local farmers. The majority of its processing capacity is devoted to broccoli. A typical month of processing consists of buying 10,000 kilograms of broccoli at a cost of $0.55 per kilogram.

The broccoli then goes through the following processes:

Cutting $ 7,000

Sorting 2,500

Cleaning 14,000

Total $ 23,500

Product yields and average selling price per kilogram are as follows:

Fresh broccoli crowns

KG. Selling price Additional processing Yield (Tetra Paks) Selling price per Tetra Pak

6,000 $2.85

Frozen broccoli

KG. Selling price Additional processing Yield (Tetra Paks) Selling price per Tetra Pak

2,500 $2.10

Grade B broccoli

KG. Selling price Additional processing Yield (Tetra Paks) Selling price per Tetra Pak

1,000 $5,500 3,000 $4.80

Total KG (6000+2500+1000) = 9,500

500 kg of the purchased product is waste and cannot be sold.
Grade B broccoli is made into broccoli soup and sold in Tetra Paks.
The cost of this additional processing is $5,500, and each package can be sold for $4.80.

Problem 1: Using the net realizable method, how much of the joint costs should be allocated to the broccoli soup?

Reference no: EM132804376

Questions Cloud

Justify the need for four categories of measurement : Based on the information learned, create and justify the need for four categories of measurement, such as customer satisfaction or financial performance.

Analyze the models of school organizations : Analyze the models of school organizations and explain how they have helped to form your understanding and concepts of what a school is.

Describes the four types of needs : Describes the four types of needs and compares them. Explains the interaction of the four types and the role of each type of need in the community assessment.

What are the pros and cons of each approach : Flexibility is an important personal quality for negotiators and leaders to possess. How can negotiators be flexible? What are the dangers of being too.

How much of the joint costs should be allocated : Using the net realizable method, how much of the joint costs should be allocated to the broccoli soup? A vegetable processor that purchases vegetables

Analyze how family involvement in play differs by culture : Analyze how family involvement in play differs by culture and explain how can you support these differences as a leader in the field of early childhood.

Make amount of materials backflushed from finished goods : Make Amount of materials backflushed from Finished Goods to Cost of Goods Sold and Amount of materials backflushed from RIP to Finished Goods

What do you notice about the interests and concerns : Observing an adolescent: If you already have frequent opportunities to interact with an adolescent, what do you notice about their interests, concerns.

Prepare the necessary journal entries to record for speedy : Prepare the necessary journal entries to record the above transactions. Speedy uses backflush costing to account for its manufacturing costs.

User Account

All Pages

How much of the joint costs should be allocated

Reference no: EM132804376

Reference no: EM132804376

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT