Explore BrainMass

Explore BrainMass

    Realizable Value Method for Cost per Case by Product

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X8, 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 is as follows:

    Product
    Cases
    Sales Value at Splitoff Point
    Separable Costs
    Selling Price

    Catsup
    100,000
    $6 per case
    $3.00 per case
    $28 per case

    Juice
    150,000
    8 per case
    5.00 per case
    25 per case

    Canned
    200,000
    5 per case
    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?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:19 am ad1c9bdddf
    https://brainmass.com/business/accounting/realizable-value-method-cost-case-product-331672

    Solution Summary

    The solution discusses the realizable value method for cost per case by product.

    $2.19

    ADVERTISEMENT