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Suppose That One Hog Yields 200 Pounds of Ham, 75

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Essay

Suppose that one hog yields 200 pounds of ham, 75 pounds of chops, and 25 pounds of miscellaneous items. The sales value of each of the products is as follows:  Product  Sales Value Per Pound  Ham $1.20 Chops $2.00 Miscellaneous items $0.40\begin{array} { l l } \underline{\text { Product } }& \underline{\text { Sales Value Per Pound }} \\\text { Ham } & \$ 1.20 \\\text { Chops } & \$ 2.00 \\\text { Miscellaneous items } & \$ 0.40\end{array} The hog costs $550. Processing costs are $40.
Required:
A. Determine the proper allocation of joint costs to the three products by using the physical-units method.
B. Repeat part "B" by using the relative-sales-value method.

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