Allocating Joint Costs Using The Weighted Average Method Orchard Fresh Inc Purchases Apples From Local Orchards And So 1 (33.99 KiB) Viewed 33 times
Allocating Joint Costs Using The Weighted Average Method Orchard Fresh Inc Purchases Apples From Local Orchards And So 2 (36.28 KiB) Viewed 33 times
Allocating Joint Costs Using the Weighted Average 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 Bapples 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 Bacles and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still stable for conning Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of apples Weight Factor Grades Pounds Grade A 4.0 1,500 5,000 Grade 8 2.0 Slices 8,000 1.0 Applesauce 5,500 0.5 Total 20,000 Total joint costs $21,000 Required: 1. Allocate the joint cost to the four grades of apples using the weighted average method. Round your allocation percentages to four decimal places and round the located costs to the nearest dollar Joint Cost Grades Allocation
Grades Allocation Grade A Grade 1 Slices Applesauce Total (Note: The Joint cost allocation does not equal $21,000 due to rounding.) 7. What if the factory found that Grade A apples were being valued toos by customers and decided to decrease the weight factor for Grade A apples to 3.07 How would that affect the allocation of cost to Grado A soples? How would affect the allocation of cost to the firing orades Round your wocation percentages to four decimal places and round the allocated costs to the nearest dollar Joint Cost Grades Allocation Grade A Grade Slices Applesauce Total (Note: The joint cost allocation does not equal $21,000 due to rounding)
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