Solved by verified expert :Page 1Problem 1- 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:ProductCasesSales Value at Splitoff PointSeparable CostsSelling PriceCatsup100,000$6 per case$3.00 per case$28 per caseJuice150,0008 per case5.00 per case25 per caseCanned200,0005 per case2.50 per case10 per caseQuestion: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. (10 points)Problem 2 -Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:ProductUnits ProducedSales Value at Splitoff PointTurpentine6,000 liters$60,000Paint thinner6,000 liters50,000Spot remover3,000 liters25,000Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used. (10 points)Problem 3 -Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows:Sales Value atProductBoard feetSplitoff PointEnding Inventory2 x 4’s6,000,000$0.30 per board foot500,000 bdft.2 x 6’s3,000,0000.40 per board foot250,000 bdft.4 x 4’s2,000,0000.45 per board foot100,000 bdft.Slabs1,000,0000.10 per board foot50,000 bdft.Question:Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary. (10 points)Question 1.1.Related to Problem #1, 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.(Points : 10) Question 2.2.Related to Problem #2, determine the amount of joint cost allocated to each product if the physical-measure method is used.(Points : 10) Question 3.3.Related to Problem #3, determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.(Points : 10)
