Penny's Pineapples Is a Pineapple Grower Joint Product Costs of Cultivating, Fertilizing and Picking Pineapples Total
Penny's Pineapples is a pineapple grower. After cultivating, fertilizing, growing, and picking pineapples, the company sells whole pineapples to food processors. The company is considering adding a processing line where sliced pineapples and pineapple juice, along with a "mash" used for animal feed will be the final products. Projected information about the costs follows:
Joint product costs of cultivating, fertilizing and picking pineapples total $1,000,000.
Required:
(a) Determine the amount of joint costs allocated to each product using the net realizable value method.
(b) Determine the final cost per unit for each product.
(c) Determine the gross margin as a percent of sales for each product.
(d) A fertilizer manufacturer approaches Penny Martin, the President of the company, and asks to buy the rinds and other excess materials currently used to produce Mash. He would be willing to pay $0.30 per pound for these materials. What advice would you give Penny?
Correct Answer:
Verified
(b)
(c) \[\begin{array} { l c c ...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q141: Liberty Credit Checks produces two styles
Q142: Describe two methods of accounting for by-products.
Q143: Bartoff Foods produces three supplemental food products
Q144: Castro Corporation has one service department and
Q145: Portofino Manufacturing Corporation manufactures three products
Q147: Boswell Consulting has two service departments, S1
Q148: Fantasy Manufacturing produces three products in a
Q149: Morgan and Regis Consultants is a large,
Q150: Dawson Corporation produces a product called Blocker,
Q151: Timberland Corporation produces three products from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents