E16-25 (book/static) Question Help * During 2017, the selling prices of the items and the total amounts sold were as follows: The Cook Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point. (Click the icon to view the sales information.) 1 (Click the icon for additional information.) Read the requirements. Requirement 1. Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2017, using the (a) NRV, and the (b) constant gross-margin percentage NRV cost allocation methods. (a) Start with the NRV cost allocation method. Begin by computing the net realizable value for total production at the point of splitoff and the weighting for each product. (Enter the weights to two decimal places.) Total Requirements Net realizable value of total production at splitoff Weighting 1. Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2017, using the following joint-cost-allocation methods: a. NRV (Net realizable value) method b. Constant gross-margin percentage NRV methood More Info 2. Compare the gross-margin percentages for X, Y, and Z using the two methods given in requirement 1. Products X and Y are ready for sale immediately upon splitoff without further processing or any other additional costs. Product Z, however, is processed further before being sold. There is no available market price for Z at the splitoff point The selling prices quoted here are expected to remain the same in the coming year Print Done More Info Print Done . X-68 tons sold for $1,200 per ton - Y - 480 tons sold for $900 per ton . Z-672 tons sold for $600 per ton The total joint manufacturing costs for the year were $580,000. Cook spent an additional $200,000 to finish product Z. There were no beginning inventories of X Y, or Z. At the end of the year, the following inventories of completed units were on hand: X, 132 tons; Y, 120 tons; Z, 28 tons. There was no beginning or ending work n process Enter any number in the edit fields and then click Check Answer Print Done 13 Peamaining Check