Macon Farms raises peaches that, at harvest, are separated into three grades: pr

Question

Macon Farms raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to products based on bushels of output. The $337,500 joint cost for one harvest yielded the following output quantities.

Product Output in Bushels
Premium 14,520
Good 38,940
Fair 12,540


The joint process also created a by-product that had a total net realizable value of $45,000. The company records the by-product inventory at the time of production. Allocate the joint cost to the joint products using bushels of output. Round proportion answers to two decimal places.

Product Bushels Proportion Allocation
Premium $
Good $
Fair $
Total $

Explanation / Answer

Product Bushels Proportion Allocations premium 14,520 .22 64,350 good 38,940 .59 172,575 fair 12,540 .19 55,575 total 66,000 1 292,500

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.