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Realizable Value Method for Cost per Case by Product

Author:
January 23rd, 2023

Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X8, 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 Splitoff 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?

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