By-product and cost allocation
Georgia Fresh raises peaches that, at harvest, are separated into three grades: premium, good, and fair. Joint cost is allocated to products based on bushels of output. The $337,500 joint cost for one harvest yielded the following output quantities.
Product Output in Bushels
Premium 16,500
Good 43,560
Fair 5,940
The joint process also created a by-product that had a total net realizable value of $65,000. The company records the by-product inventory at the time of production. Allocate the joint cost to the joint products using bushels of output. Round proportion answers to two decimal places.
| Product | Bushels | Proportion | Allocation |
| Premium | $ | ||
| Good | $ | ||
| Fair | $ | ||
| $ |
