Rabito, Inc., is a large food-processing company. It processes 152,000 pounds of peanuts in the peanuts department at a

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Rabito Inc Is A Large Food Processing Company It Processes 152 000 Pounds Of Peanuts In The Peanuts Department At A 1 (70.61 KiB) Viewed 19 times

Rabito, Inc., is a large food-processing company. It processes 152,000 pounds of peanuts in the peanuts department at a cost of $183,000 to yield 12,000 pounds of product A, 72,000 pounds of product B, and 15,000 pounds of product C. (Click the icon to view the information.) C More info Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Let's begin by determining the formula to compute the joint costs allocated for product C by entering the appropriate amounts. Joint costs Net realizable value Joint costs allocated = • Product A is processed further in the salting department at a cost of $36,000. It yields 12,000 pounds of salted peanuts, which are sold for $9 per pound. • Product B (raw peanuts) is sold without further processing at $4 per pound. • Product C is considered a byproduct and is processed further in the paste department at a cost of $10,500. It yields 15,000 pounds of peanut butter, which are sold for $9 per pound. Print O Done The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. overview of operations follows: (Click the icon to view the overview.) Read the requirements. Requirements 1. 2. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Compute unit costs per pound for products A, B, and C, treating all three as joint products and allocating joint costs by the NRV method. Print Done X