The Delicious Canning Company Processes Tomatoes into Ketchup, Tomato Juice

Essay

The Delicious Canning Company processes tomatoes into ketchup, tomato juice, and canned tomatoes. During the summer, the joint costs of processing the tomatoes were $420,000. There were no beginning or ending inventories for the summer. Production and sales value information for the summer were as follows:
$\begin{array}{llrr}\text {Product}&\text {Cases}&\text {Additional Costs}&\text {Selling Price}\\ \text { Ketchup } & 100,000 & \$ 3.00 \text { per case } & \$ 28 \text { per case } \\\text { Juice } & 150,000 & 5.00 \text { per case } & \$ 25 \text { per case } \\\text { Canned } & 200,000 & 2.50 \text { per case } & 10 \text { per case }\end{array}$

Required:
a. Determine the amount allocated to each product if the estimated net realizable value method is used.
b. Determine the amount allocated to each product if the physical quantities method is used.