The Doe Company sells three products
Not what you're looking for?
The Doe Company sells three products: sliced pineapples, crushed pineapples, and pineapple juice. The pineapple juice is a by-product of sliced pineapple, while crushed pineapples and sliced pineapples are produced simultaneously form the same pineapple. Some pineapple slices break, and these are used to make crushed pineapple.
The production process is a follows:
1. A total of 100,000 pounds of pineapples is processed at a cost of $120,000 in Department 1. Twenty percent of the pineapples weight is scrap and is discarded during processing. Twenty percent of the processed pineapple is crushed and transferred to Department 2. The remaining is transferred to Department 3.
2. In Department 2, a further cost outlay of $15000 is required to pack the crushed pineapple. Here a further 10 percent is lost in processing. The packed product is sold at $3 a pound.
3. In Department 3, the material is processed at a total additional cost of $40,000. Thirty percent of the processed pineapple turns into juice and is sold at $0.50 a pound after $3,500 is incurred as selling costs. The remaining 70 percent is transferred to Department 4.
4. Department 4 packs the sliced pineapples into tins. Costs incurred here total $25,000. The cans are then ready for sale at $4.00 a pound.
Prepare a schedule showing the allocation of the processing cost of $120,000 between crushed and sliced pineapple using the net realizable value method. The net realizable value of the juice is to be added to the sales value of the sliced pineapples.
Purchase this Solution
Solution Summary
The expert examines the Doe Company selling three products.
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
Recent Feedback
- "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
- "thank you!"
- "Thank you again Jayant. You are super fast. "
- "Thank you Jayant. You are appreciated. "
- "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Motivation
This tests some key elements of major motivation theories.