Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes.
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X2, the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer is as follows:
Product
Cases Sales
Value at Split-off Point
Separable Costs
Selling Price
Catsup
100,000
6 per case
$3.00 per case
28 per case
Juice
150,000
8 per case
5.00 per case
25 per case
Canned
200,000
5 per case
2.50 per case
10 per case
Question: Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product?
