Hershey processes chocolate products in two stages. In the joint stage, cocoa beans are processed into chocolate syrup. After split-off, in stage two, the chocolate syrup is further processed into 3 types of chocolate bars; Milky Way, Rich Dark, and Hazelnut. These chocolates are then sold to various distributors who box and sell them for Christmas. During the year, the costs to produce the chocolate syrup totaled $650,000. The following relates to product information beyond split-off Milky Way Rich Dark Hazelnut Selling price per unit $20 $8 $4.50 Further processing costs beyond split-off $560,000 $800,000 $225,000 Production in units 80,000 200,000 150,000 Sales in units 50,000 170,000 150,000 REQUIRED: Show all calculations 1. Calculate the cost of the ending inventory for each product using the Net Realizable Value method. Assume there was no beginning inventory. (10 marks) 2. If Hazelnut are treated as a by-product, and the physical method is used for Milky Way and Rich Dark, how much of the joint costs will be allocated to each product? (3 marks) 3. If Rich Dark could be sold at split-off point for $4.25/unit, should the company further process Rich Dark or sell them at the split-off point? (2 marks)