Coffee Beverages Processes Coffee and Bottles It as Frappuccino, Cappuccino

question 38

Essay

Coffee Beverages processes coffee and bottles it as Frappuccino, Cappuccino, and Canadian. During the year the joint costs of processing the coffee were $270,000. There were no beginning or ending inventories. Production and sales value information were as follows:
Sales Value
Product Cases at Split-Off Separable Costs Selling Price
Frappuccino 300,000 $9 per case $5.00 per case $32 per case
Cappuccino 200,000 $8 per case $3.00 per case $30 per case
Canadian 400,000 $7 per case $2.00 per case $20 per case
a)Allocate the joint costs using the physical output method.
b)Allocate the joint costs using the net realizable value method.
c)Allocate the joint costs using sales value at split-off point method.

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Definitions:

Nucleotides

The building blocks of DNA and RNA, consisting of a nitrogenous base, a sugar (ribose in RNA, deoxyribose in DNA), and one to three phosphate groups.

Pyrimidines

Nitrogenous bases, each composed of a single ring of carbon and nitrogen atoms (e.g., thymine, cytosine, and uracil); components of nucleic acids. Compare with purines.

Phosphate Groups

Phosphate groups are chemical groups consisting of a phosphorus atom bonded to four oxygen atoms (PO4), important in energy transfer within cells.

Ribose Groups

Components of RNA molecules consisting of five-carbon sugars connected to the nucleobases and phosphate groups.