Bartoff Foods produces three supplemental food products simultaneously through a refining process costing $186,000.The joint products,Bulkup and Bodybuilder,have a final selling price of $8 per pound and $10 per pound,respectively,after additional processing costs of $2 per pound for each product incurred after the split-off point.Quicksnack,a by-product,is sold at the split-off point for $6 per pound.The production of Bulkup results in 20,000 pounds with a caloric value of 6,000 calories per pound.The production of Bodybuilder,which is very high in carbohydrates,has a caloric value of 12,500 calories per pound.10,000 pounds of Bodybuilder are produced.Quicksnack has a caloric value of 2,000 calories a pound and 2,000 pounds are produced.(CMA adapted)
Required:
(a)Allocate the joint product costs using the net-realizable-value method,assuming that Quicksnack is accounted for as a by-product,with its net realizable value deducted from the cost of the main products.(b)Allocate the joint product costs using the physical measures method,assuming that Quicksnack is accounted for as a by-product,with its sales revenue accounted for as "other revenue."
(c)Compute Bartoff Food's gross margin under requirements a and b.

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The Answer of Bartoff Foods produces three supplemental food products simultaneously through a refining process costing $186,000.The joint products,Bulkup and Bodybuilder,have a final selling price of $8 per pound and $10 per pound,respectively,after additional processing costs of $2 per pound for each product incurred after the split-off point.Quicksnack,a by-product,is sold at the split-off point for $6 per pound.The production of Bulkup results in 20,000 pounds with a caloric value of 6,000 calories per pound.The production of Bodybuilder,which is very high in carbohydrates,has a caloric value of 12,500 calories per pound.10,000 pounds of Bodybuilder are produced.Quicksnack has a caloric value of 2,000 calories a pound and 2,000 pounds are produced.(CMA adapted)
Required:
(a)Allocate the joint product costs using the net-realizable-value method,assuming that Quicksnack is accounted for as a by-product,with its net realizable value deducted from the cost of the main products.(b)Allocate the joint product costs using the physical measures method,assuming that Quicksnack is accounted for as a by-product,with its sales revenue accounted for as "other revenue."
(c)Compute Bartoff Food's gross margin under requirements a and b.

Bartoff Foods Produces Three Supplemental Food Products Simultaneously Through a Refining