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Setler [38]
3 years ago
6

Sugar Cane Company processes sugar beets into three products. During September, the joint costs of processing were $150,000. Pro

duction and sales value information for the month were as follows: Product Units Produced Sales Value at Splitoff Point Separable costs Sugar 6,000 $40,000 $12,000 Sugar Syrup 4,000 35,000 32,000 Fructose Syrup 2,000 25,000 16,000 Required: Determine the amount of joint cost allocated to each product if the sales value at splitoff method is used.
Business
1 answer:
aev [14]3 years ago
5 0

Answer:

The description as per the given question is described below.

Explanation:

The given value is:

Joint costs of processing,

= $150,000

According to the question,

The ratio of sale value will be:

= 40,000:35,000:25,000

= 8:7:5

On adding we get,

= 8+7+5

= 20

hence,

The amount of joint cost allocated to each product will be:

Sugar,

= 150000\times \frac{8}{20}

= 60,000 ($)

Sugar syrup,

= 150000\times \frac{7}{20}

= 52,500 ($)

Fructose syrup,

= 150000\times \frac{5}{20}

= 37,500 ($)

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