Question

Allocating on Gosts using the Physical Units Method Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories Grade A are large blomstreeles that can be sold to gourmet fruit sellers, Grade apples are small and may be slightly out of proportion. These we packed in bones and sold to grocery stores, Apples for showerven aller than Grad Bapples and have blemishes. Apples for applic are of lower grade than scoles for she, yet table for ning normation o r chet 20,000 punts of w is as follows: Grades Pounds Grade A 5.400 Totaljon i s , 000 1. A tentats the fourtes the Joint Con Gates Grade Grade Applesauce

Answer 1

ANSWER

Part-1
Grades	Joint cost allocated
Grade A	1440
	(18,000*1600/20000)
Grade B	4500
	(18,000*5000/20000)
Slices	7200
	(18,000*8000/20000)
Apple sauce	4860
	(18,000*5400/20000)
Total Joint Cost	18,000

Part-2
Grades	Joint cost allocated
Grade A	1440
	(1600*90%)
Grade B	4500
	(5000*90%)
Slices	7200
	(8000*90%)
Apple Sauces	4860
	(5400*90%)
Total	18,000

Part-3
Grades	Joint cost allocated
Grade A	1800
	(2000*90%)
Grade B	4140
	(4600*90%)
Slices	7200
	(8000*90%)
Apple Sauces	4860
	(5400*90%)
Total	18,000

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