Problem
Crackle and Crunch Co. processes peanuts into three products. During March, the joint costs of processing were $240,000. Production and sales value information for the month were as follows:
Units Splitoff Separable
Product Produced Sales Value Costs
Salted peanuts 15,000 $100,000 $32,000
Raw peanuts 11,000 $85,000 $70,000
Peanut butter 6,000 $58,000 $38,000
Task
I. Determine the amount of joint cost allocated to each product if the physical measure method is used.
II. Determine the amount of joint cost allocated to each product if the net realizable value method is used. Round to the nearest thousand.