The Delicious Canning Company Processes Tomatoes into Ketchup,tomato Juice,and Canned

question 79

Essay

The Delicious Canning Company processes tomatoes into ketchup,tomato juice,and canned tomatoes.During the summer,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 were as follows: $$\begin{array} { | l | r | r | r | } \hline \text { Product } & \text { Cases } & \text { Addtional Costs } & \text { Seling Price } \\\hline \text { Ketchup } & 100,000 & \$ 3.00 \text { per case } & \$ 28 \text { per case } \\\hline \text { Juice } & 150,000 & 5.00 \text { per case } & \$ 25 \text { per case } \\\hline \text { Canned } & 200,000 & 2.50 \text { per case } & 10 \text { per case } \\\hline\end{array}$$
Required:
a.Determine the amount allocated to each product if the estimated net realizable value method is used.b.Determine the amount allocated to each product if the physical units method is used.

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Definitions:

Good Faith

Acting with honesty and sincerity without any intent to defraud or seek an unfair advantage.

Defective

Describing a product or good that fails to meet quality standards or does not function as intended.

Insufficient Funds

a situation where an account does not have enough money to cover a transaction, often leading to denied payments or penalties.

Handwritten Terms

Handwritten terms are provisions or conditions manually written in a contract or agreement, which can add specificity or clarity to the document's stipulations.