Joint processing costs totaled $1,000,000.
What method would you recommend the company select to allocate the joint production costs of $1,000,000? Give reasons for your answer.
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:

Question

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The Answer of Joint processing costs totaled $1,000,000.
What method would you recommend the company select to allocate the joint production costs of $1,000,000? Give reasons for your answer.
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:

Joint Processing Costs Totaled $1,000,000