The Delicious Canning Company Processes Tomatoes into Ketchup, Tomato Juice

question 131

Essay

The Delicious Canning Company processes tomatoes into ketchup, tomato juice, and canned tomatoes. During the summer, the joint costs of processing the tomatoes were $420,000. There were no beginning or ending inventories for the summer. Production and sales value information for the summer were as follows:
$\begin{array}{llrr}\text {Product}&\text {Cases}&\text {Additional Costs}&\text {Selling Price}\\ \text { Ketchup } & 100,000 & \$ 3.00 \text { per case } & \$ 28 \text { per case } \\\text { Juice } & 150,000 & 5.00 \text { per case } & \$ 25 \text { per case } \\\text { Canned } & 200,000 & 2.50 \text { per case } & 10 \text { per case }\end{array}$

Required:
a. Determine the amount allocated to each product if the estimated net realizable value method is used.
b. Determine the amount allocated to each product if the physical quantities method is used.

---

Definitions:

Xerosis

A medical term for abnormally dry skin, which can be caused by various factors including environmental conditions and certain skin conditions.

Circumscribed Lesion

A well-defined, localized abnormal area on skin or tissue, often differing in color or texture from surrounding areas.

Bulla

An elevated, fluid-filled blister more than 5 mm in diameter that forms on the skin or mucous membranes.

Wheal

A small, raised, and often itchy area on the skin, typically resulting from an allergic reaction or as part of certain skin tests.