New Brunswick Soy Products $($NBSP$)$ buys soy beans and processes them into other soy products. Each tonne of soy beans that NBSP purchases for $$340$ can be converted for an

additional $$180$ into $550lbs$ of soy meal and $100$ gallons of soy oil. A pound of soy meal can be sold at splitoff for $$1\mathrm{.}36,$ and soy oil can be sold in bulk for $$4\mathrm{.}75$ per gallon.

NBSP can process the $550lbs$ of soy meal into $700lbs$ of soy cookies at an additional cost of $$310.$ Each pound of soy cookies can be sold for $$2\mathrm{.}36$ per pound. The $100$ gallons of

soy oil can be packaged at a cost of $$270$ and made into $400$ quarts of Soyola. Each quart of Soyola can be sold for $$1\mathrm{.}15.$

Required

Allocate the joint cost to the cookies and the Soyola using:

a$.$ Sales value at splitoff method

b$.$ NRV method

Should the company have processed each of the products further? What effect does the allocation method have on this decision?