Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard Fresh, Inc., uses the sales-value-at-split-off method of joint cost allocation and has provided the following information about the four grades of apples:
Grades Pounds Price at Split-Off(per Ib.)
Grade A $1,600 $4.00
Grade B $5,000 1.00
Splices $8,000 0.50
Applesauce $5,400 0.10
Total $20,000
Total joint cost is $18,000.
Required:
1. Allocate the joint cost to the four grades of apples using the sales-value-at-split-off method.
2. What if the price at split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B apples? How would it affect the allocation of cost to the remaining grades?

Answer:

Orchard Fresh, Inc.

1. Allocation of the joint cost to the four grades of apples using the sales-value-at-split-off method:

Total joint cost allocation rate is $18,000/$20,000 = $0.90

Grade A             $1,600 * $0.90 =  $1,440

Grade B            $5,000 * $0.90 = $4,500

Splices              $8,000 * $0.90 = $7,200

Applesauce     $5,400 * $0.90 =  $4,860

Total allocated costs                   $18,000

2. When Grades B apples price increased to $1.20 per pound:

Total joint cost allocation rate is $18,000/$21,000 = $0.857

Grade A             $1,600 * $0.857 =   $1,371

Grade B            $6,000 * $0.857 =  $5,142

Splices              $8,000 * $0.857 = $6,856

Applesauce     $5,400 * $0.857 =  $4,628

Total allocated costs                      $17,997

Explanation:

a) Data and Calculations:

Grades    Pounds    Total costs  Price at Split-  

                                                    Off(per Ib.)    

Grade A             400        $1,600        $4.00

Grade B          5,000       $5,000           1.00

Splices          16,000       $8,000          0.50

Applesauce 54,000       $5,400          0.10

Total                             $20,000

Joint cost = $18,000

Allocation of joint costs:

Total joint cost is $18,000/$20,000 = $0.90

Grade A             $1,600 * $0.90 =  $1,440

Grade B            $5,000 * $0.90 = $4,500

Splices              $8,000 * $0.90 = $7,200

Applesauce     $5,400 * $0.90 =  $4,860

Total allocated costs                   $18,000

Total joint cost is $18,000/$21,000 = $0.857

Grade A             $1,600 * $0.857 =   $1,371

Grade B            $6,000 * $0.857 =  $5,142

Splices              $8,000 * $0.857 = $6,856

Applesauce     $5,400 * $0.857 =  $4,628

Total allocated costs                      $17,997

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 15.80 percent on your equity investments

Consider this data for Marston Manufacturing Company and use it to complete the table:
Selected Financial Data for
Marston Manufacturing Company
Average cash $57,813
Average accounts payable $320,000
Average accounts receivable $1,387,500
Average inventories $693,750
Average cash sales $4,625,000
Average credit sales $13,875,000
Average cost of goods sold $8,325,000
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Inventory conversion period 30.42 days
Payables deferral period days
Receivables conversion period
Operating cycle 66.92 days
Cash conversion cycle 52.89 days

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2. Payments to suppliers: January $108,000, February $202,500.
3. Wages: January $81,000, February $108,000. Wages are paid in the month they are incurred.
4. Administrative expenses: January $56,700, February $64,800. These costs include depreciation of $2,700 per month. All other costs are paid as incurred.
5. Selling expenses: January $40,500, February $54,000. These costs are exclusive of depreciation. They are paid as incurred.
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Please match each of the following terms to the description of best fit.

a. Risk associated with price fluctuations caused by interest rate changes B.
b. This is the risk that a firm's cost of debt will fall and as a result reinvested coupon payments will earn less yield moving forward.
c. Risk that the Borrower will not make payments on time or in full D.
d. Coupon Payments typically follow a benchmark market rate E.
e. All of the yield is determined by the difference in the price of the bond and the par value F.
f. Can be assessed using the perpetuity formula

1. Interest Rate Risk
2. Reinvestment Risk
3. Default Risk
4. Floating rate bond
5. Zero Coupon Bond
6. Consol Bond

Refer to SM1 Q2. Thomas has a ticket to go to a movie this Saturday. He was willing to pay $20, but he only paid $15 for it. After he bought the movie ticket his friend offered to take him out to dinner Saturday evening. Thomas has to choose between going for the movie or a free dinner. He can resell the ticket for $10. What is the lowest value that Thomas should place on the free dinner to make him choose the free dinner rather than the movie.

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A. $332.500
B. $323.650
C. $307.750
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andy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold 450 650 800 Total costs Variable costs $ 63,000 $ 91,000 $ 112,000 Fixed costs $ 187,200 $ 187,200 $ 187,200 Total costs $ 250,200 $ 278,200 $ 299,200 Cost per unit Variable cost per unit $ 140.00 $ 140.00 $ 140.00 Fixed cost per unit 416.00 288.00 234.00 Total cost per unit $ 556.00 $ 428.00 $ 374.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 700 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.

Managers need to understand how information flows within the organization, how their organization interacts with other organizations, and how the various parts of the organization interact with one another.


True

False

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the path a product takes from product to final user is called what?

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Prepare:
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2) the September 30 entry to reimburse the fund.
3) an October 1 entry to increase the fund to $450.

How is paid wages and outstanding wages treated in accounting equation.​

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The entry recorded by Castaway Corp. on September 1, 2020, would include the following:
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B. A decrease to retained earnings for $5,000.
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D. No net change to preferred stock outstanding.

the aicpa code of professional conduct includes which sections

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