3 - ALLOCATING JOINT COSTS Fancy Foods produces two types of microwavable products: beef-flavored ramen and shrimp- flavored ramen. The two products share common inputs such as noodle and spices. The production of ramen results in a waste product referred to as stock, which Fancy dumps at negligible costs in a local drainage area. In June 2020, the following data were reported for the production and sales of beef-flavored and shrimp-flavored ramen: Joint costs (costs of noodles, spices, and other inputs and processing to splitoff point) Joint Costs $400,000 Beginning inventory (tons) Production (tons) Sales (tons) Selling price per ton Beef Shrimp Ramen Ramen 0 0 20,000 28,000 20,000 28,000 $5 $ 20 Due to the popularity of its microwavable products, Fancy decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are to be sold under the names Special B and Special S, respectively. Following are the monthly data for all the products: Joint costs (costs of noodles, spices, and other inputs and processing to splitoff point) Separable costs of processing 20,000 tons of Beef Ramen into 25,000 tons of Special B Separable cost of processing 28,000 tons of Shrimp Ramen into 34,000 tons of Special S Joint Costs Special B Special S $400,000 $100,000 $238,000 Beef Ramen Shrimp Ramen Special B Special S Beginning inventory (tons) Production (tons) Transfer for further processing (tons) 0 20,000 28,000 20,000 28,000 0 0 0 25,000 34,000 Sales (tons) 25,000 34,000 Selling price per ton $ 5 $20 $17 $ 33 Required: Calculate Fancy's gross-margin percentage for Special B and Special S when joint costs are allocated using the following: a. Sales value at splitoff method b. Physical-measure method c. Net realizable value method