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

Separable costs of processing $20,000$ tons of

shrimp ramen into $24,000$ tons of Special S Calculate Tasty's gross margin percentage for Special $B$ and Special $S$ when

joint costs are allocated using:

a$.$ Sales value at splitoff method

b$.$ Physical measure method

c$.$ Net realizable value method

Recently, Tasty discovered that the stock it is dumping can be sold to cattle

ranchers at $$3$ per ton. In a typical month with the production levels

shown above, $4,000$ tons of stock are produced and can be sold by incurring

marketing costs of $$10,800.$ Samantha Donnelley, a management accountant,

points out that if the stock is treated as a joint product and the sales value at

splitoff method is used, the stock product would lose about $$705$ each month,

so it should not be sold. How did Donnelley arrive at that final number, and

what do you think of her analysis? Should Tasty sell the stock?Tasty Foods produces two types of microwavable products$-$beef$-$flavoured ramen and shrimp$-$flavoured ramen. The two products share common inputs such as noodles and spices. The production of ramen results in a

waste product referred to as stock, which Tasty dumps at negligible costs in a local drainage area. In June, the following data were reported for the production and sales of beef$-$flavoured and shrimp$-$flavoured ramen:

$($Click the icon to view the production and sales data.$)$

Due to the popularity of its microwavable products, Tasty 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 monthly data for all the products follow:

$($Click the icon to view the monthly data for all products.$)$

Required

Production and sales data