3. Berkel Company processes sugar cane into three products. During May, the join
ID: 2459332 • Letter: 3
Question
3.
Berkel Company processes sugar cane into three products. During May, the joint costs of processing were $600,000. Production and sales value information for the month were as follows:
Product
Units Produced
Sales Value at Splitoff Point
Separable costs
Sugar
15,000
$200,000
$60,000
Sugar Syrup
10,000
175,000
192,000
Fructose Syrup
5,000
125,000
96,000
Required:
Determine the amount of joint cost allocated to each product if the sales value at splitoff method is used.
Product
Units Produced
Sales Value at Splitoff Point
Separable costs
Sugar
15,000
$200,000
$60,000
Sugar Syrup
10,000
175,000
192,000
Fructose Syrup
5,000
125,000
96,000
Explanation / Answer
Answer
Joint Cost allocation using sales value at split off method
Figures in $
Product
Units produced
Sales value at Spit off point
Apportioned joint cost
Sugar
15000
200000
240000
600000*(200000/500000)
Sugar Syrup
10000
175000
210000
600000*(175000/500000)
Fructose Syrup
5000
125000
150000
600000*(125000/500000)
Total
500000
600000
Joint Cost allocation using sales value at split off method
Figures in $
Product
Units produced
Sales value at Spit off point
Apportioned joint cost
Sugar
15000
200000
240000
600000*(200000/500000)
Sugar Syrup
10000
175000
210000
600000*(175000/500000)
Fructose Syrup
5000
125000
150000
600000*(125000/500000)
Total
500000
600000
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