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eBook Allocating Joint Costs Using the sales-Value-at-Split-off Method Orchard Fresh, Inc., purchases apples from local...

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eBook Allocating Joint Costs Using the sales-Value-at-Split-off 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 8 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 8 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, Incs, uses the sales value-at-split-off method of Joint cost allocation and has provided the following information about the four grades of apples: Price at Split off Pounds (per lb.) Grades Grade A 1,600 $4.00 Grade 8 5,000 1.00 Slices 3,000 0,50 Applesauce 5,400 0.10 Total 20,000 Total joint costs $18,000 Required: 1. Allocate the joint cost to the four grades of apples using the sales-value-at-salt-off method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar

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