lowa Soy Products (ISP) buys soybeans and processes them into other soy products. Each ton of soybeans that ISP purchases for $360 can be converted for an additional $220 into 575 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.08 and soy oil can be sold in bulk for $4 per gallon. ISP can process the 575 pounds of soy meal into 675 pounds of soy cookies at an additional cost of $330. Each pound of soy cookies can be sold for $2.08 per pound. The 100 gallons of soy oil can be packaged at a cost of $200 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.45. Read the requirements. Requirements nc la 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method 2. Should ISP have processed each of the products further? What effect does the allocation method have on this decision? g Print Done O fee in 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/ Soyolal 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 ISP 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 ISP processed the products further. (Use parentheses or a minus sign for losses.) Cookies/ Soyolal Soy Meal Sell at splitoff: Revenue Process further : NRV Profit (Loss) from processing further Soy Oil the soy meal because it profit. They should the soy ISP should oil because profit will under both allocation methods, it a relevant cost to the decision to Since the total joint cost is sell at splitoff or process further