Innovation Soy Products (DSP) buys soybeans and processes them into other soy products. Each ton of soybeans that DSP purchases for $320 can be converted for an additional $190 into 600 lbs of soy meal and 80 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.48 and soy oil can be sold in bulk for $4.25 per gallon. DSP can process the 600 pounds of soy meal into 750 pounds of soy cookies at an additional cost of $360. Each pound of soy cookies can be sold for $2.48 per pound. The 80 gallons of soy oil can be packaged at a cost of $270 and made into 320 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 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/ Soy Meal Soyola/ Soy Oil Total Sales value of total production at splitoff $ 888 $ 340 $ 1,228 Weighting 0.723 0.277 1.000 Joint costs allocated $ 369 $ 141 $ 510 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.) Soyola Cookies Total Final sales value of total production Deduct separable costs Net realizable value Weighting Joint costs allocated 1,860 $ 464 $ 2,324 360 270 630 $ 1,500 $ 194 $ 1,694 0.885 0.115 1.000 EA 451 $ 59 $ 510 Requirement 2. Should DSP 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 DSP processed the products further. (Use parentheses or a minus sign for losses.) Soyola/ Cookies/ Soy Meal Soy Oil Sell at splitoff: Revenue Process further: NRV Profit (Loss) from processing further