Maria owns a small apple orchard and press operation. After picking and selling the high-grade apples in their fresh state, she pressesthe remaining apples into juice. This process also yields pomace (a pulp like product). There is a market for both the juice and thepomace immediately after this joint pressing process is complete. The joint processing costs are $28,000. Both of these products canbe processed further: the juice can be turned into hard cider, while the pomace can be turned into jam. The values of each product atdifferent stages of completion, along with the additional costs that will be incurred if the products are processed further, are asfollows.Apple juice/hard ciderApple pomace/jamSales Valueat Split-OffAdditionalProcessing CostFinal SalesValue$37,600$13,692$108,0009,4004,90819,000(a)If Maria uses the sales value at split-off method to allocate the joint costs, how much will be allocated to each product? (Roundproportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)Apple Juice/Hard CiderAllocated joint costseTextbook and MediaSave for LaterApple Pomace/JamAttempts: 0 of 2 usedSubmit Answer

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $44 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $26 or processed further for $17 to make the cocktail of nutrients that are sold for $46. The depeeled spuds can be sold as is for $37 or processed further for $26 to make frozen french fries that are sold for $58. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold as…
Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $44 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $26 or processed further for $17 to make the cocktail of nutrients that are sold for $46. The depeeled spuds can be sold as is for $37 or processed further for $26 to make frozen french fries that are sold for $58. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold…
Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $45 to buy from farmers and $13 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $27 or processed further for $18 to make the cocktail of nutrients that are sold for $47. The depeeled spuds can be sold as is for $38 or processed further for $27 to make frozen french fries that are sold for $59. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold as…
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Whispering Winds's Christmas Tree Farm Ltd. grows pine, fir, and spruce trees. The farm cuts and sells trees during the Christmas season and exports most of the trees to the United States. The remaining trees are sold to local tree-lot operators. It normally takes 12 years for a tree to grow to a suitable size, and the average selling price of a tree is $29. The biggest costs to the business are pest control, fertilizer, and pruning trees over the 12-year period. These costs average $12 per tree (assume these are incurred evenly over the 12-year growing cycle). Assume IFRS is used. Assume that the fair value less cost to sell (net realizable value) at the end of 2020 is $12 and the opening value was $7. Assume that the cost to sell are nil. Prepare the journal entries if the costs are capitalized each year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O…
lowa Soy Products (ISP) buys soy beans and processes them into other soy products. Each ton of soy beans can be converted into 500 pounds of soy meal and 100 gallons of soy oil. This process incurs joint costs of $ 540. At splitoff point; soy meal can be sold for $4 per pound, and soy ol can be sold for $5 per gallon. ISP can process the 500 pounds of soy meal into 600 pounds of soy cookies at an additional cost of $1500. Each pound of soy cookles can be sold for $6 per pound. The 100 gallons of soy oil can be packaged at an additional cost of $300 and made into 400 liters of Soyola. Each liter of Soyola can be sold for $3. (For each item below write your answers inside the boxes.) a) What is the total sales value (from both products) at splitoff point? Ans. = $ b) Using sales value at splitoff method, what amount of the joint costs ($ 540) would be allocated to soy meal Ans, = $ C) Using net realizable value method, what amount of the joint costs ($ 540) would be allocated to Soyola?…
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The Seattle Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. SRC can produce 25 table covers, 75 chair covers, and 5 pounds of package filler from 100 pounds of bottles. In June, SRC had no beginning inventory. It purchased and processed 120,000 pounds of bottles at a cost of $600,000. SRC sold 25,000 table covers for $12 each, 80,000 chair covers for $8 each, and 5,000 pounds of package filler at $1 per pound. Q. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SRC?

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