Red Sauce Canning Company Processes Tomatoes into Catsup,tomato Juice,and Canned

question 43

Essay

Red Sauce Canning Company processes tomatoes into catsup,tomato juice,and canned tomatoes.During the summer of 20X5,the joint costs of processing the tomatoes were $420,000.There was no beginning or ending inventories for the summer.Production and sales value information for the summer is as follows:
$$\begin{array} { | l | r | r | r | r | } \hline { \text { Product } } & { \text { Cases } } & \begin{array} { r } \text { Sales Value at } \\\text { Splitoff Point }\end{array} & \text { Separable Costs } & \text { Selling Price } \\\hline \text { Catsup } & 100,000 & \$ 6 \text { per case } & \$ 3.00 \text { per case } & \$ 28 \text { per case } \\\hline \text { Tuice } & 150,000 & 8 \text { per case } & 5.00 \text { per case } & 25 \text { per case } \\\hline \text { Canned } & 200,000 & 5 \text { per case } & 2.50 \text { per case } & 10 \text { per case } \\\hline\end{array}$$ Required:
Determine the amount allocated to each product if the estimated net realizable value method is used,and compute the cost per case for each product.

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another country, often contributing to a nation's gross domestic product.

Imports

Goods or services brought into one country from another for sale.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than its trade partners, leading to more efficient trade outcomes.

Domestic Price

The price of goods or services within a country, influenced by local demand and supply conditions.