Joint costs of processing cocoa beans Cocoa butter Cocoa powder Joint costs $ 1,430,000 [from 300,000 pounds of cocoa beans] Separable costs sunscreen 600,000 Separable costs Hot Cocoa Mix $ 500,000 Cocoa beans are processed further to make Cocoa Butter and Cocoa Powder Cocoa butter Cocoa powder Cocoa butter is processed further to make sunscreen Cocoa powder is processed further to make Hot Cocoa Mix Sunscreen Hot Cocoa Mix Beg Inventory (pounds) Production Transfer Sales in June 0 100,000 100,000 End inventory (pounds) Selling price per pound Required: 1). Compute the Net Realizable Value (NRV) Method 0 22 0 150,000 150,000 0 0 90,000 125,000 76,000 0 14,000 17 37 114,000 11,000 48 2). Compute the Product Line Income statement for month ended June using the NRV Method Allocation of joint costs using net realizable value method Final sales value Deduct separable costs Net realizable Value at splitoff point Weighting Joint costs Allocation Production Costs per Gallon Sunscreen Hot Cocoa Mix Total Prod 90,000 pounds Prod 125,000 pounds $ $ Production Costs per Gallon Product line income statement using net realizable method Revenues costs of goods sold Joint costs Separable costs Production costs Ending inventory Cost of goods sold Gross margin Gross margin % Sunscreen Hot Cocoa Mix Total