b. Now allocate the joint cost to the cookies and the Soyola using the NRV method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Cookies Soyola Total Final sales value of total production Deduct separable costs Net realizable value Weighting Joint costs allocated Requirement 2. Should ISP have processed each of the products further? What effect does the allocation method have on this decision? Begin by calculating the profit or loss that would occur if ISP processed the products further. (Use parentheses or a minus sign for losses.) Cookies/ Soyolal Soy Meal Soy Oil Sell at splitoff: Revenue Process further: NRV Profit (Loss) from processing further ISP should | profit. They should Vthe soy meal because it Vthe soy oil because profit will | under both allocation methods, it | a relevant cost to the decision to sell at splitoff or process further. Since the total joint cost is Idaho Soy Products (ISP) buys soybeans and processes them into other soy products. Each ton of soybeans that ISP purchases for $300 can be converted for an additional $170 into 650 lbs of soy meal and 80 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.28 and soy oil can be sold in bulk for $4.25 per gallon. ISP can process the 650 pounds of soy meal into 800 pounds of soy cookies at an additional cost of $350. Each pound of soy cookies can be sold for $2.28 per pound. The 80 gallons of soy oil can be packaged at a cost of $210 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.35. Read the requirements Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) CookiesSoyolal Soy Meal Soy Oi Total Sales value of total production at splitoff| Weighting Joint costs allocated