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CoursHeroTranscribedText: Question 2 (20 Marks) AFB grows, processes, packages, and sells three apple products: slices that are used in frozen pies, applesauce, and apple juice. The outside skin of the apple, which is removed in the cutting department and processed as animal feed, is treated as a by-product. AFB uses the net realizable value method to assign costs of the joint process to its main products. The apple skin by-product net realizable value is used to reduce the joint production costs prior to allocation to the main products. Details of AFB' production process follow: . The cutting department washes the apples and removes the outside skin. The department then cores and trims the apples for slicing. At this point, each of the three main products and the by- product are recognizable. Each product is then transferred to the next department for final processing. The slicing department receives the trimmed apples and slices and freezes them. Any juice generated during the slicing operation is frozen with the slices. The crushing department trims pieces of apple and processes them into applesauce. The juice generated during this operation is used in the applesauce. . The juicing department pulverizes the core and any surplus apple from the cutting department into a liquid. This department experiences a loss equal to 8 percent of the weight of the good output produced. . The feed department chops the outside skin into animal food and packages it. A total of 270,000 pounds of apples entered the cutting department during October. The following information shows the costs incurred in each department, the proportion by weight (based on pounds) transferred to the four final processing departments, and the selling price of each end product. Assume no beginning or ending inventory of apple slices, applesauce, or juice. Proportion of Product by Labour Overhead Weight Transferred to Selling Price per Pound of Department Costs Costs Departments Final Product Cutting $35,000 $25,000 Slicing 4,250 7,030 33 % $ 0.80 Crushing 3,125 5,425 30 % 0.55 Juicing 1,330 1,670 27 % 0.40 Feed 700 10 % 0.10 Total $43,705 $39,825 100 % Focu

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