Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. harvey flavours (hf) produces flavouring for drink

Harvey Flavours (HF) produces flavouring for drink and desert products. One canister of their input...

90.2K

Verified Solution

Question

Accounting

image

Harvey Flavours (HF) produces flavouring for drink and desert products. One canister of their input syrup is mixed with other ingredients and processed, and can produce 3 litres of desert topping and 9 litres of drink concentrate. In June 2019, HF bought 12,000 canisters of input syrup for $89,000. HF spent another $47,800 on other ingredients. The desert topping can be sold for $3.60 per litre and the drink concentrate can be sold for $4.80 per litre. HF also produces a premium mix product by further processing the desert topping at the splitoff point. The further processing costs $1.00 per litre of the desert topping, and yields one half liter of the premium mix for every liter of desert topping. The premium mix can be sold for $9.60 per litre. Required: Allocate the $136,800 joint cost to the desert topping and the drink concentrate using the following: a) The physical measure method (using liters) of joint cost allocation b) Sales vale at splitoff method of joint cost allocation c) The NRV method of joint cost allocation

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students