Question - Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20x3, 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 were 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
|
Determine the amount allocated to each product if the constant gross profit margin percentage method is used.