Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 2017, 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:

Required:
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.

Question

Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 2017, 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:
  
Required:
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.

Quizplus · Accepted Answer

The Answer of Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 2017, 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:
  
Required:
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.

Red Sauce Canning Company Processes Tomatoes into Catsup, Tomato Juice