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All$-$A$-$Buzz makes three products from a joint production process using honey. Processing beyond split$-$off and cost allocations

All$-$A$-$Buzz makes three products from a joint production process using honey.

Joint cost for the process for the year is $$197,120.$

Each container of honey butter, jam, and syrup, respectively, contains $16$ ounces, $8$ ounces, and $3$ ounces of product.

a$.$ Determine which products should be processed beyond the split$-$off point.

$(1)$ joint cost allocated based on units produced

$(2)$ joint cost allocated based on weight

$(3)$ joint cost allocated based on sales value at split$-$off

Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.

Joint cost for the process for the year is $$197,120.$

Per Unit Incremental

Units of Selling Price Processing Final Sales

Product Output at Split$-$Off Cost Price

Honey butter $16,0004\mathrm{.}00$ $$3\mathrm{.}00$ $$6\mathrm{.}00$

Honey jam $32,0006\mathrm{.}404\mathrm{.}0014\mathrm{.}00$

Honey syrup $1,6003\mathrm{.}000\mathrm{.}403\mathrm{.}60$

Each container of honey butter, jam, and syrup, respectively, contains $16$ ounces, $8$ ounces, and $3$ ounces of product.

a$.$ Determine which products should be processed beyond the split$-$off point.

Process Further?

Honey butter Answer $1$

Honey jam Answer $2$

Honey syrup Answer $3$

b$.$ Assume honey syrup should be treated as a by$-$product. Allocate the joint cost based on $(1)$ units produced, $(2)$ weight, and $(3)$ sales value at split$-$off. Use the net realizable value approach, assuming by$-$product revenues reduce joint production costs.

$(1)$ joint cost allocated based on units produced

Honey butter Answer $4$

Honey jam Answer $5$

Total Answer $6$

$(2)$ joint cost allocated based on weight

Honey butter Answer $7$

Honey jam Answer $8$

Total Answer $9$

$(3)$ joint cost allocated based on sales value at split$-$off

Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.

Honey butter Answer $10$

Honey jam Answer $11$

Total Answer $12$

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