1. Instant Foods produces two types of microwavable productsbeef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodle and spices. The production of ramen results in a waste product referred to as stock, which Instant dumps at negligible costs in a local drainage area. In June 2018, the following data were reported for the production and sales of beef-flavored and shrimp-flavored ramen:

	Joint costs
Joint Costs (costs of noodles, spices, and other inputs and processing to splitoff point)	$240,000
	Beef Ramen	Shrimp Ramen
Beginning inventory (tons)	0	0
Production (tons)	10,000	20,000
Sales (tons)	10,000	20,000
Selling price per ton	$10	$15

Due to the popularity of its microwavable products, Instant decides to add a new line of products that targets dieters. These new products are produced by adding a special ingredient to dilute the original ramen and are to be sold under the names Special B and Special S, respectively. The following is the monthly data for all the products:

	Joint costs			Special B		Special S
Joint Costs (costs of noodles, spices, and other inputs and processing to splitoff point)	$240,000
Separable costs of processing 10,000 tons of Beef Ramen into 12,000 tons of Special B				48,000
Separable cost of processing 20,000 tons of Shrimp Ramen into 24,000 tons of Special S						168,000
Transfer for further processing (tons)	Beef Ramen	Shrimp Ramen		Special B		Special S
Beginning inventory (tons)	0	0		0		0
Production (tons)	10,000	20,000		12,000		24,000
	10,000	20,000
Sales (tons)				12,000		24,000
Selling price per ton	$10		$15		$18		$25

1. Allocate the joint costs of $240,000 between Beef Ramen and Shrimp Ramen under

(a) the sales value at split-off method (1 pt)

(b) the physical-measure method. (1pt)

2. Allocate the joint costs of $240,000 between Special B and Special S under the NRV method. (1pt)

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