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Problem 1– Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X2, the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer.Production and sales value information for the summer is as follows:
ProductCasesSales Value at Splitoff PointSeparable CostsSelling Price
Catsup100,000$6 per case$3.00 per case$28 per case
Juice150,0008 per case5.00 per case25 per case
Canned200,0005 per case2.50 per case10 per case
Question:Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product. (10 points)