Jim Davis Company processes hogs into three products, chops, bacon and sausage. Production and selling price data follow: Bacon was smoked, sliced and packaged after the split-off point. The cost incurred for these processes was $100,000. Sausage was ground and formed into patties after the split-off. This process cost $60,000.
If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.

Question

Jim Davis Company processes hogs into three products, chops, bacon and sausage. Production and selling price data follow:  Bacon was smoked, sliced and packaged after the split-off point. The cost incurred for these processes was $100,000. Sausage was ground and formed into patties after the split-off. This process cost $60,000.
If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.

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The Answer of Jim Davis Company processes hogs into three products, chops, bacon and sausage. Production and selling price data follow:  Bacon was smoked, sliced and packaged after the split-off point. The cost incurred for these processes was $100,000. Sausage was ground and formed into patties after the split-off. This process cost $60,000.
If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.

Jim Davis Company Processes Hogs into Three Products, Chops, Bacon