More Info Cocoa beans processed, 15,300 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $41,000 Production Sales Selling Price Separable Processing Costs Chocolate powder 10,540 pounds $ 10 per pound $ 32.516 6,200 pounds 12,000 pounds Milk chocolate 17,680 pounds $ 12 per pound $ 39,000 Cocoa Edibles Factory fully processes both of its intermediate products into chocolate powder or milk chocolate. There is an active market for these intermediate products. In August 2017, Cocoa Edibles Factory could have sold the chocolate-powder liquor base for $20 a gallon and the milk-chocolate liquor base for $45 a gallon. Print Done ocate the joint costs using the Hecimal places.) More Info ts. (Round the weighting amount Score: 0 of 10 pts Physical total pro colate powder It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-chocolate liquor base. These two intermediate products become separately identifiable at a single splitoff point. Every 900 pounds of cocoa beans yields 40 gallons of chocolate-powder liquor base and 160 gallons of milk-chocolate liquor base. chocolate se from any list or enter any The chocolate-powder liquor base is further processed into chocolate powder. Every 40 gallons of chocolate powder liquor base yield 620 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 160 gallons of milk-chocolate liquor base yield 1,040 pounds of milk chocolate. rts showing Check Answer Requirement 1. Calculate how the joint costs of $41,000 would be allocated between chocolate powder and milk chocolate under the different methods. a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Sales value of total Joint costs production at splitoff Weighting allocated Chocolate powder Milk chocolate Total b. Allocate the joint costs using the physical measure method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Physical measure of Joint costs total production Weighting allocated Chocolate powder Milk chocolate Total c. Allocate the joint costs using the net realizable value method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places. Round the joint costs allocated to the nearest whole dollar.) Net realizable Joint costs value Weighting allocated Chocolate powder Milk chocolate Total d. Constant gross-margin percentage NRV method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the percentage to four decimal places, X.XXXX%.) The overall gross-margin percentage for all joint products together is %. Now determine the formula to compute the joint costs allocated, then enter the appropriate amounts. (Round your answers to the nearest whole dollar.) Joint costs allocated Chocolate powder = Milk chocolate Requir 3. Could Cocoa Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations. (Use parentheses or a minus sign when entering decreasing amounts.) Begin by determining the formula to compute the increase/(decrease) in operating income, then enter the appropriate amounts. Increase/(decrease) in operating income Chocolate powder Milk chocolate
