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Can you assist with the below? Hfx Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsaleable intermediate products: ICR8,

Can you assist with the below?

Hfx Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons
to generate three nonsaleable intermediate products: ICR8, ING4, and XGE3.
These intermediate products are further processed separately to produce crude oil,
natural gas liquids (NGL), and natural gas (measured in liquid equivalents).
An overview of the process and results for August 2018 follows:
Note: numbers are small
A new law has recently been passed that taxes crude oil at 30% of operating income.
No new tax is to be paid on natural gas liquid or natural gas. Starting August 2018
Hfx Oil & Gas must report a separate product-line income statement for crude oil. One challenge facing
Hfx Oil & Gas is how to allocate the joint cost of producing the three separate saleable outputs.
Assume no beginning or ending inventory.
Crude Oil NGL Gas
Joint Costs $ 1,600
Separable Costs $ 210 $ 90 $ 235
175 barrels @ $22 75 barrels @ $13 550 eq barrels @ $1.50

Question 1.

Allocate the August 2018 joint Cost among the three products using physical measures method (8)
Prepare opertaing income statement for each product required in 1 (5)
Allocate the August 2018 joint Cost among the three products using NRV method (8)

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