Havenstock produces lime juice and lime margarita mix. A 500-pound batch of limes costing $70 is processed and results in two components-concentrate and nectar. The labor to achieve this process is $120 per batch. The concentrate is used to produce lime juice and the nectar is used to produce margarita mix. The concentrate is processed into 80 pints of lime juice at a batch cost of $30, and the nectar is processed into 40 bottles of margarita mix at a cost of $20 per batch. The sales price of each pint of juice is $5, and each bottle of margarita mix has a sales value of $2.50. How much is the joint cost allocated to lime juice using the relative sales value method?

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The Answer of Havenstock produces lime juice and lime margarita mix. A 500-pound batch of limes costing $70 is processed and results in two components-concentrate and nectar. The labor to achieve this process is $120 per batch. The concentrate is used to produce lime juice and the nectar is used to produce margarita mix. The concentrate is processed into 80 pints of lime juice at a batch cost of $30, and the nectar is processed into 40 bottles of margarita mix at a cost of $20 per batch. The sales price of each pint of juice is $5, and each bottle of margarita mix has a sales value of $2.50. How much is the joint cost allocated to lime juice using the relative sales value method?

Havenstock Produces Lime Juice and Lime Margarita Mix