Joint product costs of cultivating, fertilizing and picking pineapples total $1,000,000.

Peters 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:

Required:
(a) Determine the amount of separable 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 for each product.
(d) A fertilizer manufacturer approaches Peter Good, 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 Peter?

Question

Joint product costs of cultivating, fertilizing and picking pineapples total $1,000,000.

Peters 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:
 
Required:
(a) Determine the amount of separable 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 for each product.
(d) A fertilizer manufacturer approaches Peter Good, 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 Peter?

Quizplus · Accepted Answer

The Answer of Joint product costs of cultivating, fertilizing and picking pineapples total $1,000,000.

Peters 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:
 
Required:
(a) Determine the amount of separable 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 for each product.
(d) A fertilizer manufacturer approaches Peter Good, 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 Peter?

Joint Product Costs of Cultivating, Fertilizing and Picking Pineapples Total