Maurice Tutor

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Category > Management Posted 25 Mar 2018 My Price 3.00

Macon Farms

25.    LO.4 (By-product and cost allocation) Macon Farms raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to prod- ucts based on bushels of output. The $337,500 joint cost for one harvest yielded the following output quantities.

 

Product

Output in Bushels

Premium

14,520

Good

38,940

Fair

12,540

 

 

 

 

The joint process also created a by-product that had a total net realizable value of

$45,000. The company records the by-product inventory at the time of production. Allocate the joint cost to the joint products using bushels of output.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Mar 2018 05:03 AM My Price 3.00

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