Final answer:
To allocate the joint costs of $30,000 for Vermont Sensations' blueberry products using the relative sales value method, calculate the sales value proportions for blueberry jam (25%) and syrup (75%), then multiply the proportions by the joint costs. The jam is allocated $7,500, and the syrup is allocated $22,500 in joint costs.
Step-by-step explanation:
To allocate the joint costs of $30,000 to the blueberry jam and syrup using the relative sales value method, we first need to determine the total sales value of both products. The sales value of the blueberry jam is $15,000, and the sales value of the blueberry syrup is $45,000, giving a combined total sales value of $60,000. Using the relative sales value, we calculate the proportion of the total sales value that each product represents and then allocate the joint costs based on these proportions.
For the blueberry jam:
Proportion of sales value = $15,000 / $60,000 = 0.25 (or 25%)Allocated joint costs = 0.25 x $30,000 = $7,500
For the blueberry syrup:
Proportion of sales value = $45,000 / $60,000 = 0.75 (or 75%)Allocated joint costs = 0.75 x $30,000 = $22,500
The blueberry jam will be allocated $7,500 of the joint costs, and the blueberry syrup will be allocated $22,500 of the joint costs based on the relative sales value method.