Allocate the joint cost to the four grades of peaches by finding the average joint cost per pound and multiplying it by the number of pounds in the grade
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Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning. Information on a recent purchase of 26,000 pounds of peaches is as follows:
Grades Pounds Grade A 2,080 Grade B 5,200 Slices 9,100 Pureed 9,620 Total 26,000 Total joint cost is $19,500.
Required:
1. Allocate the joint cost to the four grades of peaches using the physical units method.
Joint Cost Grades Allocation Grade A $fill in the blank 1 Grade B fill in the blank 2 Slices fill in the blank 3 Pureed fill in the blank 4 Total $fill in the blank 5 2. Allocate the joint cost to the four grades of peaches by finding the average joint cost per pound and multiplying it by the number of pounds in the grade. Round the average cost answer to the nearest cent.
Average cost = $fill in the blank 6 per pound.
Joint Cost Grades Allocation Grade A $fill in the blank 7 Grade B $fill in the blank 8 Slices $fill in the blank 9 Pureed $fill in the blank 10 3. What if there were 2,600 pounds of Grade A peaches and 4,680 pounds of Grade B? How would that affect the allocation of cost to these two grades? How would it affect the allocation of cost to the remaining common grades?
Joint Cost Grades Allocation Grade A $fill in the blank 11 Grade B $fill in the blank 12 Slices $fill in the blank 13 Pureed $fill in the blank 14
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- Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning. Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of peaches: Grades Pounds WeightFactor Grade A 1,500 3.0 Grade B 5,000 2.0 Slices 8,000 0.5 Pureed 5,500 1.0 Total 20,000 Total joint cost is $20,000. Required: 1. Allocate the joint cost to the four grades of peaches using the weighted average…Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning. Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc., uses the sales-value-at-split-off method of joint cost allocation and has provided the following information about the four grades of peaches: Grades Pounds Price at Split-Off (per lb.) Grade A 1,800 $6.00 Grade B 4,000 2.00 Slices 9,000 1.30 Pureed 5,200 0.80 Total 20,000 Total joint cost is $16,000. Required: 1. Allocate…Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B applesare smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples forapplesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows:Grades PoundsGrade A 1,600Grade B 5,000Slices 8,000Applesauce 5,400Total 20,000 Total joint cost is $18,000.Required:1. Allocate the joint cost to the four grades of apples using the physical units method. (Carryout the percent calculations to four significant digits.)2. Allocate the joint cost to the four grades of apples by finding the average joint cost perpound and multiplying…
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How would the analysis change if the special order were for…In 1989, Robert Smith opened a small fruit and vegetable market in Bethlehem, Pennsylvania. Originally, Smith sold only produced grown on his family farm and orchard. As the markets popularity grew, however, he added bread, canned goods, fresh meats, and a limited supply of frozen goods. Today, Smiths market is a full range farmers market with a strong local customer base. Indeed, the markets reputation for low prices and high-quality draws customers from other Pennsylvania cities and even from the neighboring state of New Jersey. Currently, Smiths market has 40 employees. These include sales staff, shelf stockers, farm laborers, shift supervisors, and clerical staff. Recently, Smith has noticed a decline in profits and sales, while his purchases of products for resale have continued to rise. 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