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Red Dot Company processes tomatoes into ketchup, tomato juice, and canned tomatoes. During July 2020, the joint costs of processing the tomatoes were $2,087,000. The company maintains no
inventories. Production and sales information follows:
(Click the icon to view the production and sales information.)
Determine the amount of joint cost allocated to each product if Red Dot uses the estimated net realizable value method. What is the cost per case for each product?
Begin by determining the amount of joint cost allocated to each product if Red Dot uses the estimated net realizable value method. (Round the percentages to the nearest whole number.)
Final
Total
Net
Sales
Separable Realizable
Product
Value
Costs
Value
Percentage
Joint
Costs
Costs
Allocated
Total
Separable
Costs
Total
Product
Costs
Ketchup
%
Juice
%
Canned
%
What is the cost per case for each product? (Round the cost per case to the nearest cent, $X.XX.)
Product Cost per case
Ketchup
Juice
Canned
More info
Sales Value at
Product Cases
Splitoff Point Separable Costs
Selling Price
Ketchup 105,000 $3 per case $2 per case $33 per case
Juice 178,000 $4 per case $3 per case $27 per case
Canned 205,000 $12 per case $8 per case $12 per case
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