Jim Davis Company processes pork into three productschops,


Question Description:

30

Jim Davis Company processes pork into three products—chops, bacon, and sausage. Production and selling price datafollow: Chops 100,000 lbs. $5.00/lb.Bacon 210,000 lbs. $4.00/lb.Sausage 410,000 lbs. $2.00/lb. Pork is processed in the Processing Department. From thesplit-off point, bacon is smoked, sliced, and packaged in theBacon Department. The cost incurred for these processes was$100,000. In addition, sausage was ground and formed intopatties in the Sausage Department after the split-off. Thisprocess cost $60,000. a. If joint processing costs were $1,500,000, calculate the totalcost of each product using the adjusted sales value method.b. Prepare the journal entries to (1) record the joint processingand movement of product out of the Processing Departmentafter the split off, and (2) record the additional processingand completion of the bacon and sausage. (This problem is worth 15 points.)

Answer

30