Problem
The Canning Company processes A, B, and C. During the summer of 2011, the joint costs of processing were $900,000. 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
|
|
A
|
200,000
|
$6 per case
|
$3.00 per case
|
$28 per case
|
|
B
|
350,000
|
8 per case
|
5.00 per case
|
25 per case
|
|
C
|
400,000
|
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.