Cost Accounting Question
Pepsi Beverages processes soft drinks and bottles it as Marinda, Seven up and Coke. During the year, the joint costs of processing the coffee were $450,000. There were no beginning or ending inventories. Production and sales value information were as follows:
|
Sales Value
|
|
Product
|
Cases
|
At Split-Off
|
Separable Costs
|
Selling Price
|
|
Marinda
|
200,000
|
$9 per case
|
$5.00 per case
|
$32 per case
|
|
Seven up
|
300,000
|
$8 per case
|
$3.00 per case
|
$30 per case
|
|
Coke
|
500,000
|
$7 per case
|
$2.00 per case
|
$20 per case
|
a. Allocate the joint costs using the physical output method.
b. Allocate the joint costs using sales value at split-off point method.