Innova Soy Products (NSP) buys soybeans and processes them into other soy products. Each pound of soy meal can be sold at splitoff for $1.16 and soy oil can be sold in bulk for $4 per gallon. nof soybeans that NSP purchases for $360 can be converted for an additional $180 into 650 lbs of soy meal and 80 gallons of soy oil. A f $240 and NSP can process the 650 pounds of soy meal into 700 pounds of soy cookies at an additional cost of $380. Each pound made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.45. soy cookies can be sold for $2.16 per pound. The 80 gallons soy oil can e packaged at a cost Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Cookies/ Soyola/ Soy Meal Soy Oil Total Sales value of total production at splitoff Weighting Joint costs allocated b. Now allocate the joint cost to the cookies and the Soyola using the NRV method. (Round the weights to three decimal places and joint costs to the nearest dollar.) Cookies Soyola Total Final sales value of total production 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 losses.) Cookies/ Soyola Soy Meal Soy Oil Sell at splitoff : Revenue Process further NRV Profit (Loss) from processing further the soy meal because it NSP should profit. They should the soy oil because profit will Since the total joint cost is under both allocation methods, it a relevant cost to the decision to sell at splitoff or process further