Eco Foods produces two types of microwavable products: beef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodle and spices. The production of ramen results in a waste product referred to as stock, which Eco dumps at negligible costs in a local drainage area. In June 2020, the following data were reported for the production and sales of beef-flavored and shrimp-flavored ramen:

Due to the popularity of its microwavable products, Eco decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are to be sold under the names Special B and Special S, respectively. Following are the monthly data for all the products:

Requirements

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1.	Calculate Eco's gross-margin percentage for Special B and Special S when joint costs are allocated using the following:
	a.	Sales value at splitoff method
	b.	Physical-measure method
	c.	Net realizable value method
2.	Recently, Eco discovered that the stock it is dumping can be sold to cattle ranchers at $6 per ton. In a typical month with the production levels shown, 2,500 tons of stock are produced and can be sold by incurring marketing costs of $13,300. Samantha Decroce, a management accountant, points out that treating the stock as a joint product and using the sales value at splitoff method, the stock product would lose about $5,142 each month, so it should not be sold. How did Decroce arrive at that final number, and what do you think of her analysis? Should Eco sell the stock?

0.27" Requirement 1. Calculate Eco's gross-margin percentage for Special B and Special S using the different methods for allocating the joint costs. a. Allocate the joint costs using the sales value at splitoff method. Begin by entering the amounts in the table and allocate the joint costs. (Enter Sales value at splitor: Special B/ Specials beef ramen shrimp ramen Total Sales value of total production at splitoff 150,000 $ 405,000 $ 555,000 Weighting 0.73 1.00 Joint costs allocated s 70,200's 189,800's 260,000 Compute the gross margin percentages using the sales value at splitoff method to allocate the joint costs. (Round the percentages to the neares margin amounts and percentages.) Special B Special S Revenues Joint costs Separable costs Gross margin Gross margin percentage Total 96 Data table amen. The two Due to the popularity of its microwavable products, Eco decides to add a new line of Data table B Joint Costs Joint costs (costs of noodles, Spices, and other 2 Inputs and processing to splitoff point) 3 4 Beginning inventory Cons) 5 Production Cons) 6 Sales (ons) 7 Selling price perfon $ 260,000 Beer Shrimp Ramen Ramen 0 0 6,000 9,000 6.000 9.000 $ 45 2015 B D E 11 Joint Costs Special B Specials Joint costs (costs of noodies, spices, and other 12 inputs and processing to sploff point) S 260,000 Separable costs of processing 6,000 tons of Beer 13 Ramen into 12,000 tons of Special B S48.000 Separable costs of processing 9.000 tons of 14 Shrimp Ramen into 17,000 tons of Specials $ 85.000 Beef Shrimp 15 Ramen Ramen Special B Special S 16 Beginning inventory (tons) 0 0 17 Production (ons) 6,000 9,000 12.000 17.000 18 Transfer for further processing tons) 6.000 9,000 19 Sales (ons) 12.000 17.000 20 Selling price perton S 25$ 45 $ 5115 54 0 0 Print Done costs