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:
Required:
Determine the amount of joint cost allocated to each product if the sales value at split-off method is used.
Definitions:
Estimated Ending Inventory
An approximation of the value of inventory a company has on hand at the end of an accounting period.
Gross Profit Rate
A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold.
Retail Inventory Method
An accounting technique for estimating inventory value by using a proportion between the retail price and cost of goods.
Cost Ratio
A measure that compares a company's operating expenses to its revenue, indicating how efficiently it is managed by showing the percentage of sales that goes towards covering costs.
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