Edibles Factory manufactures and distributes chocolate products.

The Cocoa Edibles Factory manufactures and distributes chocolate products. (Click the icon to view more information about Cocoa.) Production and sales data for August 2020 are as follows (assume no beginning inventory): i (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate how the joint costs of $45,000 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 More info 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 500 pounds of cocoa beans yields 20 gallons of chocolate-powder liquor base and 30 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 20 gallons of chocolate powder liquor base yield 630 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 30 gallons of milk-chocolate liquor base yield 1,050 pounds of milk chocolate. More info Cocoa beans processed, 18,000 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $45,000 Separable Production Sales Selling Price Processing Costs Chocolate powder 22,680 pounds 6,300 pounds $7 per pound $ 9,220 Milk chocolate 37,800 pounds 12,500 pounds $8 per pound $ 61,070 Cocoa Edibles Factory fully processes both of its intermediate products into chocolate powder or milk chocolate. There is an active market for these intermediate products. In August 2020, Cocoa Edibles Factory could have sold the chocolate-powder liquor base for $25 a gallon and the milk-chocolate liquor base for $150 a gallon. - Requirements a. C. 1. Calculate how the joint costs of $45,000 would be allocated between chocolate powder and milk chocolate under the following methods: Sales value at splitoff b. Physical measure (gallons) NRV d. Constant gross-margin percentage NRV 2. What are the gross-margin percentages of chocolate powder and milk chocolate under each of the methods in requirement 1? 3. Could Cocoa Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations