View the step-by-step solution to:

# This question is in reference to By-Product Costing using fixed and variable cost pools. I hope that gives some clarification.

This question is in reference to By-Product Costing using fixed and variable cost pools......... I hope that gives some clarification.

"Allsap Apple Company buys apples from local orchards and presses them to produce apple juice. The
pulp that remains after pressing is sold to farmers as livestock food. This livestock food is accounted
for as a by-product. During the 20X7 fiscal year, the company paid \$800,000 to purchase 8 million pounds of apples. After processing, 1 million pounds of pulp remained. Allsap spent \$30,000 to package and ship the
pulp, which was sold for \$50,000.

1. How much of the joint cost of the apples is allocated to the pulp?

2. Compute the total inventory cost (and therefore the cost of goods sold) for the pulp.

3. Assume that \$130,000 was spent to press the apples and \$150,000 was spent to filter, pasteurize,
and pack the apple juice. Compute the total inventory cost of the apple juice produced.
"

We need you to clarify your question for our tutors! Clarification request: Dear... View the full answer

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents