A9

A9. (Joint products-unit volume and relative sales value methods) An agricultural products company buys soybeans, and separates out the soybean oil from the solid parts of the soybeans. The solid part is called soybean meal. Here are some facts regarding its production during the year Kilograms of soybean meal produced Kilograms of soybean oil produced Selling price per kilogram of soybean oil Selling price per kilogram of soybean meal Joint costs of making the two products 4,000,000 6,000,000 $5 $2 $30,000,000 ilt A. Compute the factory's total amount of revenue for the year. B. Compute the factory's total costs for the year C. Compute the total profits for the year D. If the joint costs are allocated based on the number of kilograms of products produced: A. a. How much of the joint costs would be allocated to soybean oil? b. What would be the profit or loss associated with making soybean oil? c. How much of the joint costs would be allocated to soybean meal? d. What would be the profit or loss associated with making soybean meal? E. If the joint costs are allocated based on the relative sales value of the two products: a. How much of the joint costs would be allocated to soybean oil? b. What would be the profit or loss associated with making soybean oil? c. How much of the joint costs would be allocated to soybean meal? d. What would be the profit or loss associated with making soybean meal