Keurig Dr. Pepper Inc (KDP) is a beverage distributor company of coffee, carbonated soft drinks, tea, water, juices, and more. The value that the firm provides to its customers includes a variety of options that its consumers can choose from while also making the effort to be eco-friendly. They offer customers hot and iced teas, hot cocoa, ground coffee, and traditional whole-bean coffee. Its main income drivers are packaged beverages which make up 47% of its $14 billion-dollar total revenue over the year 2022. It will continue to be its driving source of income for the upcoming years to follow. KDP’s daily operations are producing the final product of these beverages to meet the consumer’s needs and it is why the company has become successful. Keurig Dr. Pepper has a portfolio of more than 125 owned, licensed, partner, and allied brands, with leadership across numerous beverage categories. Keurig Dr. Pepper Inc., formerly known as “Green Mountain Coffee Roasters and Keurig Green Mountain”, is a publicly traded American beverage and coffee maker and its headquarters is located in Burlington, Massachusetts. KDP is not just a beverage company that is solely focused on revenue, the firm partners with organizations and associations to fight the freshwater crisis that our world is facing. Studies show that freshwater is declining and recently KDP has announced that they will aspire for Net Positive Water Impact by 2050. This decision will be beneficial in the long run because they will keep their profit margins relatively stable without the cost of input increasing as freshwater declines As a beverage business, Keurig Dr. Pepper (KDP) is likely to use process costing to determine the cost of its goods. The average cost of identical products made in large quantities is determined using the cost accounting method known as process costing. In the case of KDP, it uses a continuous manufacturing process to create a large number of drinks that are exactly the same. Soft drinks, juices, teas, and coffees are just a few of the many beverages that KDP makes. It is difficult to correctly determine the cost of each of these products using job costing because they each require different ingredients and manufacturing procedures. Many businesses are definitely going to use process costing to determine the cost of their products when taking the beverage sector into account. This claim is supported by two factors, the first one is HighVolume Production: The production of numerous identical products in large amounts is a feature of the beverage industry. Process costing is therefore the best technique for distributing costs throughout the production process. Next, Standardized Products: The bulk of beverages are standardized products because of products with consistent recipes and production processes. Since these products don't need to be customized and have standardized manufacturing procedures, job costing is not appropriate for them. To conclude, as a result of its high-volume manufacturing and standardized products, process costing is the industry standard for cost distribution. Some of the company's goods can be categorized as joint products because they share a common set of inputs and are difficult to distinguish from one another. To begin, the variety of cold brew coffee products made by Keurig Dr. Pepper is a representation of a joint product. Coffee grounds that have been coarsely ground are placed in cold water for a long period of time, usually between 12 to 24 hours to create an iced coffee. The result is a rich coffee that can be mixed with milk or water to create a cold beverage. Keurig Dr. Pepper makes a variety of cold brew coffee products, such as pre-bottled drinks and pods that can be made with their coffee maker machines. The ingredients used to make cold brew coffee include coffee beans, water, and packing items like bottles or pods. Both the bottled beverages and the coffee pods are being produced using these inputs and cannot be easily separated from each other. In light of this, the place at which the production process splits off would be where the cold brew coffee concentrate is made. At this stage, both the bottled beverages and the coffee pods can be made using the concentrate. The physical units method could be used by Keurig Dr. Pepper to distribute the joint costs of making cold brew coffee. Based on the relative physical quantities of the jointly produced products, this technique allocates joint costs. The joint costs could be split equally between the two products, for instance, if the firm makes 5,000 units of cold brew coffee concentrate. 2500 of those units would make bottled beverages and the other 2500 units would make coffee pods. Next, the variety of Snapple teas that KDP produces is another instance of a joint product. Popular iced tea brand Snapple offers a selection of flavors, including mango, lemonade, and berry. These flavors can come in bottled drinks and tea pods for use with its Keurig brewing devices. Tea leaves, water, and artificial flavors are the ingredients used in the making of Snapple teas. Both the tea pods and the bottled beverages, which cannot be distinguished from one another, are produced using these inputs. The place at which the production process splits off would be where the tea concentrate is made. The concentrate can be utilized to create both tea pods and bottled drinks. The sales value at the split-off method could be used to distribute the joint costs of producing Snapple teas. This technique allocates joint costs based on the relative sales value of the joint products at the split-off point. For instance, if the sales value of the tea concentrate is $5,000 and the sales value of the bottled beverages is $7,000, the joint costs could be distributed according to the sales value ratios of $5,000/$12,000 for the tea concentrate and $7,000/$12,000 for the bottled beverages. 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