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Rabito, Inc., is a large food processing company. It processes 157,000 pounds of peanuts in the peanuts department at a cost of $303,100 to yield 25,000 pounds of product A, 99,000 pounds of product B, and 14,000 pounds of product C. (Click the icon to view the information.) 1 i More Info . Product A is processed further in the salting department at a cost of $36,000. It yields 25,000 pounds of salted peanuts, which are sold for $12 per pound. Product B (raw peanuts) is sold without further processing at $4 per pound. Product C is considered a byproduct and is processed further in the paste department at a cost of $13,000. It yields 14,000 pounds of peanut butter, which are sold for $7 per pound. . The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows: (Click the icon to view the overview.) i Figure - Joint Costs $303,100 Separable Costs 25,000 pounds Salting Department Processing $36,000 Salted Peanuts 25,000 pounds $12/16 Peanuts Department Processing of 157,000 lb Raw Peanuts 99,000 pounds $4/1b Paste Department Processing $13,000 Peanut Butter 14,000 pounds $7/16 | 14,000 pounds Splitoff Point i Requirements 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. 2. Compute unit costs per pound for products A, B, and C, treating all three as joint products and allocating joint costs by the NRV method. Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Let's begin by determining the formula to compute the joint costs allocated for product C by entering the appropriate amounts. Joint costs Net realizable value Joint costs allocated $ 303,100 55,600 247,500 Now compute the net realizable value, weighting and joint costs allocated for products A and B by entering the appropriate amounts. (Round the weighting amounts to four decimal places.) Net realizable value Weighting A B Total