Physical and sales value allocations FINS produces three products from its fish
ID: 2715615 • Letter: P
Question
Physical and sales value allocations FINS produces three products from its fish farm: fish, fish oil, and fish meal. During July 2013, FINS produced the following average quantities of each product from each pound (16 ounces) of fish processed: Of each pound of fish processed, two ounces are waste. In July, FINS processed 37.5 tons of fish (1 ton equals 2,000 pounds). Joint cost amounted to $142,800. On average, each pound of product has the following selling prices: fish, $4.50; fish oil, $6.50; and fish meal, $2.
a. Allocate the joint cost using weight as the basis. Do not round weight percentages. Round other interim percentages to the nearest whole number.
Allocated Joint Cost
Fish $ ____.___
Oil $ _____.____
Meal $ ____.___
b. Allocate the joint cost using sales value as the basis. Round interim percentages to the nearest whole number.
Allocated Joint Cost
Fish $ _____.___
Oil $ ______.____
Meal $ _______.___
Explanation / Answer
Allocated Joint Cost
Fish $ ____.___
Oil $ _____.____
Meal $ ____.___
b. Allocate the joint cost using sales value as the basis. Round interim percentages to the nearest whole number.
Allocated Joint Cost
Fish $ __49980___.___
Oil $ __71400___.____
Meal $ ____21420___.___