Question
Asked Dec 3, 2019
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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:

 

Product

Units Produced

Sales Value at Split-off Point

Separable costs

Sugar

15,000

$200,000

$60,000

Sugar Syrup

10,000

175,000

192,000

Fructose Syrup

5,000

125,000

96,000

 

Determine the amount of joint cost allocated to each product if the sales value at split-off method is used.

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Expert Answer

Step 1

Joint production process: A joint production process results in two or more products, called as joint products. The point in the proce...

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Business

Accounting

Cost allocation and revenues

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