Answer:
D is the appropriate conclusion.
D) Heidi should drop the sweet clover term from her model.
Allocation of joint costs in proportion to the value of the output of the sales which were produced in the process during at the split-off point is a preferred approach.
<h3>What are joint costs?</h3>
Joint costs involve the benefit of more than one product, and the separation of the costs of such products is impossible as the benefits related thereto are also joint.
One of the best examples of joint costs is in a condition when a cattle-owner feeds both the flock of sheep and cattle of cows at the same time. One cannot differentiate between the separate costs allocated.
Hence, it may be said that value basis is the most appropriate method for the purpose of allocation of joint costs being incurred in the proportion as it may be.
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Answer:
$147,000
Explanation:
According to the historical cost principle, the assets of the company should be recorded at the purchase price or acquisition price in the financial statements
Since in the given situations many values are given with respect to the acquisition done by the seller, for tax turquoises, etc
But it is recorded at the purchase price i.e $147,000
