Comparison of alternative joint-cost-allocation methods, further-processing decision, chocolate products.
The Cocoa Mass Edibles Factory manufactures and distributes chocolate products Click the icon to view more information about Cocoa Mass.) Production and sales data for August 2020 are as follows (assume no beginning Inventory): (Click the icon to view the data.) Read the requirements Requirement 1. Calculate how the joint costs of $41,000 would be allocated between chocolate powder and milk chocolate under the different methods. a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Sales value of total Joint costs production at splitoff Weighting allocated Chocolate powder Milk chocolate Total b. Allocate the joint costs using the physical measure method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Physical measure of Joint costs total production Welghting allocated Chocolate powder Milk chocolate Total c. Allocate the joint costs using the NRV method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places. Round the joint costs allocated to the nearest whole dollar.) Net realizable Joint costs value allocated Weighting Chocolate powder Calculator Ask my instructor Print Clear all Check answer The Cocoa Mass Edibles Factory manufactures and distributes chocolate products (Click the icon to view more infomation about Cocoa Mass.) Production and sales data for August 2020 are as follows (assume no beginning inventory): i (Click the loon to view the data. Read the requirements. -------- Milk chocolate Total d. Constant gross-margin percentage NRV method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the percentage to four decimal places, XXXXX%.) The overall gross-margin percentage for all joint products together is %. Now determine the formula to compute the joint costs allocated, then enter the appropriate amounts. (Round your answers to the nearest whole dollar.) = Joint costs allocated Chocolate powder Milk chocolate Requirement 3. Could Cocoa Mass Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations. (Use parentheses or a minus sign when entering decreasing amounts.) Begin by determining the formula to compute the increase (decrease) in operating income, then enter the appropriate amounts. Increase/(decrease) in operating income Chocolate powder Milk chocolate Cocoa Mass Edibles Factory could increase operating income if chocolate-powder liquor base is 7 and if milk-chocolate liquor base is Calculator Ask my instructor Print Clear all Check answer The Cocoa Mass Edibles Factory manufactures and distributes chocolate products, (Click the icon to view more information about Cocoa Mass.) Production and sales data for August 2020 are as follows (assume no beginning inventory): (Click the icon to view the data.) Read the requirements Milk chocolate Total More info d. Constant gross-margin percentage NRV method. Begin by entering pox%.) The overall gross-margin percentage for all joint products together is Now determine the formula to compute the joint costs allocated, then e It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-chocolate liquor base. These two intermediate products become separately identifiable at a single splitoff point. Every 900 pounds of cocoa beans yields 40 gallons of chocolate powder liquor base and 160 gallons of milk chocolate liquor base. The chocolate powder liquor base is further processed into chocolate powder. Every 40 gallons of chocolate-powder liquor base yield 620 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 160 gallons of milk-chocolate liquor base yleld 1,040 pounds of milk chocolate Chocolate powder Milk chocolate Requirement 3. Could Cocoa Mass Edibles Factory have increased its decreasing amounts.) our computations. (Use parentheses or a minus sign when entering Begin by determining the formula to compute the increase/ decrease) i Print Done Chocolate powder Milk chocolate Cocoa Mass Edibles Factory could increase operating income if chocolate powder liquor base is and if milk-chocolate liquor base is Calculator Ask my instructor Print Clear all Check answer The Cocoa Mass Edibles Factory manufactures and distributes chocolate products. (Click the icon to view more information about Cocoa Mass.) Production and sales data for August 2020 are as follows (assume no beginning inventory: (Click the icon to view the data.) Read the requirements --- Milk chocolate Total More info d. Constant gross-margin percentage NRV method. The overall gross-margin percentage for all joint pro Now determine the formula to compute the joint cost . Cocoa beans processed, 15,300 pounds . Costs of processing cocoa beans to splitoff point (including purchase of beans), $41,000 Separable Production Sales Selling Price Processing Costs Chocolate powder 10.540 pounds 6,200 pounds $10 per pound $ $ 32.516 Milk chocolate 17,680 pounds 12,000 pounds $12 por pound $ 39.000 Cocoa Mass Edibles Factory fully processes both of its intermediate products into chocolate powder or milk chocolate. There is an active market for those intermediate products. In August 2020, Cocoa Mass Edibles Factory could have sold the chocolate-powder liquor base for $20 a gallon and the milk-chocolate liquor base for S45 a gallon. Chocolate powder Milk chocolate (Use parentheses or a minus sign when entering Requirement 3. Could Cocoa Mass Edibles Factory decreasing amounts.) Begin by determining the formula to compute the inc Print Done Chocolate powder Milk chocolate Cocoa Mass Edibles Factory could increase operating income if chocolate powder liquor base is and if milk-chocolate liquor base is Calculator Ask my instructor Print Clear all Check
