Berkel Company Processes Sugar Cane into Three Products Required:
Determine the Amount of Joint Cost Allocated to Each

question 62

Essay

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:
$$\begin{array} { | l | c | c | c | } \hline { \text { Product } } & \text { Units Produced } & \begin{array} { c } \text { Sales Value at } \\\text { Splitoff Point }\end{array} & \begin{array} { c } \text { Separable } \\\text { costs }\end{array} \\\hline \text { Sugar } & 15,000 & \$ 200,000 & \$ 60,000 \\\hline \text { Sugar Syrup } & 10,000 & 175,000 & 192,000 \\\hline \text { Fructose Syrup } & 5,000 & 125,000 & 96,000 \\\hline\end{array}$$ Required:
Determine the amount of joint cost allocated to each product if the sales value at splitoff method is used.

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Definitions:

Improvement

The process of making something better or more effective through changes, upgrades, or enhancements.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Shift

In economics, a change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at every price.

Economic Growth

An increase in the production of goods and services over a specific period, often measured as the rate of increase in gross domestic product (GDP).