Question

Allocating Joint Costs Using the Weighted Average Method Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples: Grades Pounds Weight Factor Grade A 1,500 4.0 Grade B 5,000 2.0 Slices 8,000 1.0 Applesauce 5,500 0.5 Total 20,000 Total joint cost is $22,000. Required: 1. Allocate the joint cost to the four grades of apples using the weighted average method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A $ Grade B Slices Applesauce Total $ (Note: The joint cost allocation does not equal $22,000 due to rounding.) 2. What if the factory found that Grade A apples were being valued less by customers and decided to decrease the weight factor for Grade A apples to 3.0? How would that affect the allocation of cost to Grade A apples? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A $ Grade B Slices Applesauce Total $ (Note: The joint cost allocation does not equal $22,000 due to rounding.)

Answer #1

Answer is given below

Allocating Joint Costs Using the Weighted Average Method Orchard
Fresh, Inc., purchases apples from local orchards and sorts them
into four categories. Grade A are large blemish-free apples that
can be sold to gourmet fruit sellers. Grade B apples are smaller
and may be slightly out of proportion. These are packed in boxes
and sold to grocery stores. Apples for slices are even smaller than
Grade B apples and have blemishes. Apples for applesauce are of
lower grade than apples...

Allocating Joint Costs Using the Weighted Average Method Orchard
Fresh, Inc., purchases apples from local orchards and sorts them
into four categories. Grade A are large blemish-free apples that
can be sold to gourmet fruit sellers. Grade B apples are smaller
and may be slightly out of proportion. These are packed in boxes
and sold to grocery stores. Apples for slices are even smaller than
Grade B apples and have blemishes. Apples for applesauce are of
lower grade than apples...

Allocating Joint Costs Using the Physical Units Method
Orchard Fresh, Inc., purchases apples from local orchards and
sorts them into four categories. Grade A are large blemish-free
apples that can be sold to gourmet fruit sellers. Grade B apples
are smaller and may be slightly out of proportion. These are packed
in boxes and sold to grocery stores. Apples for slices are even
smaller than Grade B apples and have blemishes. Apples for
applesauce are of lower grade than apples...

Allocating Joint Costs Using the Net Realizable Value Method
A company manufactures three products, L-Ten, Triol, and Pioze,
from a joint process. Each production run costs $12,000. None of
the products can be sold at split-off, but must be processed
further. Information on one batch of the three products is as
follows:
Product
Gallons
Further Processing
Cost per Gallon
Eventual Market
Price per Gallon
L-Ten
3,000
$0.60
$2.20
Triol
3,500
0.90
4.90
Pioze
2,200
1.60
6.90...

1) The joint costs of producing Grade A, Grade B, and Grade C
widgets is $100,000. You have 2000 pounds of grade A widgets, 3000
pounds of grade B widgets, and 5000 pounds of grade C widgets.
Allocate joint cost to the three grades of widgets using the
physical units method.
2) Refer to # 1. Assume that you use the weighted average method
to allocate joint costs. Assume that the weight factors are as
follows: Grade A, 4.0; Grade...

Physical Units Method
Alomar Company manufactures four products from a joint
production process: barlon, selene, plicene, and corsol. The joint
costs for one batch are as follows:
Direct materials
$63,228
Direct labor
35,957
Overhead
28,273
At the split-off point, a batch yields 1,174 barlon, 2,699
selene, 3,169 plicene, and 4,694 corsol. All products are sold at
the split-off point: barlon sells for $15 per unit, selene sells
for $21 per unit, plicene sells for $28 per unit, and corsol sells...

Physical Units Method
Alomar Company manufactures four products from a joint
production process: barlon, selene, plicene, and corsol. The joint
costs for one batch are as follows:
Direct materials
$65,166
Direct labor
36,992
Overhead
27,592
At the split-off point, a batch yields 1,770 barlon, 2,655
selene, 2,987 plicene, and 3,650 corsol. All products are sold at
the split-off point: barlon sells for $16 per unit, selene sells
for $22 per unit, plicene sells for $25 per unit, and corsol sells...

Physical Units Method
Alomar Company manufactures four products from a joint
production process: barlon, selene, plicene, and corsol. The joint
costs for one batch are as follows:
Direct materials
$66,816
Direct labor
35,693
Overhead
27,781
At the split-off point, a batch yields 1,868 barlon, 2,569
selene, 2,569 plicene, and 4,670 corsol. All products are sold at
the split-off point: barlon sells for $13 per unit, selene sells
for $21 per unit, plicene sells for $26 per unit, and corsol sells...

Physical Units Method
Alomar Company manufactures four products from a joint
production process: barlon, selene, plicene, and corsol. The joint
costs for one batch are as follows:
Direct materials
$71,067
Direct labor
39,263
Overhead
28,078
Allocated Joint Cost
Barlon
$
Selene
Plicene
Corsol
Total
$
2. Suppose that the products are weighted as
shown below:
Barlon
1.1
Selene
2.2
Plicene
1.4
Corsol
2.5
Allocate the joint costs using the weighted average method. If
required, round your percentage allocation to four...

Please show work!!! Thank you!
Physical Units Method
Alomar Company manufactures four products from a joint
production process: barlon, selene, plicene, and corsol. The joint
costs for one batch are as follows:
Direct materials
$64,755
Direct labor
35,387
Overhead
27,256
At the split-off point, a batch yields 1,041 barlon, 2,290
selene, 2,394 plicene, and 4,683 corsol. All products are sold at
the split-off point: barlon sells for $15 per unit, selene sells
for $20 per unit, plicene sells for $24...

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