Accounting Homework

Problem 1 – Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes.  During the summer of 20X2, the joint costs of processing the tomatoes were $420,000.  There was no beginning or ending inventories for the summer. 

Product

ion and sales value information for the summer is as follows:

 

Product

8 per case

5 per case

Cases			Sales Value at	Splitoff Point	Separable Costs	Selling Price
Catsup	100,000	$6 per case	$3.00 per case	$2	8 per case
Juice	1	50,000	5.00 per case	2	5 per case
Canned	200,000	2.50 per case	10 per case

Question: 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.  

 

Problem 2 – Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover.  During May, the joint costs of processing were $240,000.  Production and sales value information for the month is as follows:

Product

Sales Value at Splitoff Point

6,000 liters50,000

Units Produced
Turpentine		6,000 liters	$60,000
Paint thinner
Spot remover	3,000 liters	25,000

Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used.  

 

Problem 3 – Oregon Lumber processes timber into four products.  During January, the joint costs of processing were $280,000.  There was no inventory at the beginning of the month.  Production and sales value information for the month is as follows:

 

  Sales Value atProduct

Splitoff Point

50,000 bdft.

Board feet	Ending Inventory
2 x 4’s	6,000,000	$0.30 per board foot	500,000 bdft.
2 x 6’s	3,000,000	0.40 per board foot	2	50,000 bdft.
4 x 4’s	2,000,000	0.45 per board foot	100,000 bdft.
Slabs	1,000,000	0.10 per board foot

Question: Determine the value of ending inventory if the sales value at splitoff method is used for product costing.  
Round to three decimal places when necessary.