ACCOUNTING-Georgia Fresh raises peaches that, at harvest, are separated into three grades

By-product and cost allocationGeorgia 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 BushelsPremium 16,500 Good 43,560 Fair 5,940The joint process also created a by-product that had a total net realizable value of $65,000. The company records the by-product inventory at the time of production. Allocate the joint cost to the joint products using bushels of output. Round proportion answers to two decimal places.ProductBushelsProportionAllocationPremium$Good$Fair$$

 

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