Joint cost allocation
Excell spreadsheet + explanation
The growing, harvesting, sorting, and grading of apples prior to manufacturing juice and cider is part of the joint product cost. Based on the information in the scenario, determine the share of joint cost allocated to juice and cider by using an Excel spreadsheet. How is the joint cost allocated to each product?
You may use the formulas below:
? Joint cost / Total gallons produced = Joint cost per gallon produced
? Joint cost per gallon produced * gallons produced of apple juice = Joint cost for apple juice