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Innova Soy Products ( NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $340 can be

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Innova Soy Products ( NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $340 can be converted for an additional $180 into 550 lbs of soy meal and 100 gallions of soy oil. A pound of soy meal can be sold at splitoff for $1.24 and soy oil can be sold in bulk for $45 per gallon NSP can process the 550 pounds of soy meal into 600 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2 24 per pound. The 100 gations of soy oil can be packaged at a cost of $250 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.45 Read the requirements Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at spiloff method and (b) NRV method. a. First, allocate the joint cost using the sales value at spitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar) Cookies! Soy Meal Soyolal Soy Ou Total Sales value of total production at sploh Weighting Joint costs located ces and costs to the nearest dollar b. Now allocate the joint cost to the cookies and the Soyota using the NRV method. (Round the weights Cookies Seyala Total Final sales value of total production Deduct seper le costs Net reakable value Weighing Joint collocated Enter a number in the folds and then continue to the next question ROCK Innova Soy Products (NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $340 can be converted for an additional $180 into 550 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.24 and soy oil can be sold in bulk for $45 per gallon NSP can process the 550 pounds of soy meal into 600 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.24 per pound. The 100 gallons of soy cost of $250 and made into 400 quarts of Sayola. Each quart of Soyola can be sold for $1.45 Read the requirements Deduct separable costs Net realizable value Weighting Joint costs allocated Requirement 2. Should NSP have processed each of the products further? What effect does the allocation method have on this decision? Begin by calculating the profit or loss that would occur if NSP processed the products further. (Use parentheses or a minus sign for ossos.) Cookies! Soyolal Soy Meal Soy Oil Sell at splitoff: Revenue Process further : NRV Profit (Loss) from processing further NSP should the soy meal because it profit. They should the soy oil because profit Since the total joint cost is under both allocation methods, a relevant cost to the decision to sell at splitoff or process further Enter any number in the edit fields and then continue to the next question. 71 VO

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