Processing beyond splitoff and cost allocations
AllABuzz makes three products from a joint production process using honey.
Joint cost for the process for the year is $
Each container of honey butter, jam, and syrup, respectively, contains ounces, ounces, and ounces of product.
a Determine which products should be processed beyond the splitoff point.
b Assume honey syrup should be treated as a byproduct. Allocate the joint cost based on units produced, weight, and sales value at splitoff. Use the net realizable value approach,
assuming byproduct revenues reduce joint production costs.
joint cost allocated based on units produced
joint cost allocated based on weight
joint cost allocated based on sales value at splitoff
Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.
