NNW Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9 cups of bread flour. In May 2017, NNW bought 12,400 inputs of flour for $87,500. NNW spent another $47,600 on the special sifting process. The baking flour can be sold for $3.80 per cup and the bread flour for $4.90 per cup. cup of super-fine baking flour for every one cup of baking flour used. NNW puts the baking flour through a second process so it is super fine. This costs an additional $1 per cup of baking flour and the process yields The super-fine baking flour sells for $9.50 per cup. Required Baking Flour Bread Flour Total 37,200 111,600 148,800 Physical measure of total production (in cups) Weighting Joint costs allocated 0.2500 0.7500 $ 33,775 $ 101,325 $ 135,100 Requirement 1b. Allocate the $135,100 joint cost to the super-fine baking flour and the bread flour using the sales value at splitoff method of joint-cost allocation. (Round the weights to four decimal places. Round the joint costs allocated to the nearest whole dollar.) Baking Flour Bread Flou Total Sales value of total production at splitoff Weighting Joint costs allocated Enter any number in the edit fields and then click Check Answer. i H. Required X 1. Allocate the $135,100 joint cost to the super-fine baking flour and the bread flour using the following: a. Physical-measure method (using cups) of joint-cost allocation b. Sales value at splitoff method of joint-cost allocation C. NRV method of joint-cost allocation d. Constant gross-margin percentage NRV method of joint-cost allocation 2. Each of these measures has advantages and disadvantages; what are they? 3. Some claim that the sales value at splitoff method is the best method to use. Discuss the logic behind this claim. fatic Print Done NNW Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9 cups of bread flour. In May 2017, NNW bought 12,400 inputs of flour for $87,500. NN spent another $47,600 on the special sifting process. The baking flour can be sold for $3.80 per cup and the bread flour for $4.90 per cup. 1 NNW puts the baking flour through a second process so it is super fine. This costs an additional $1 per cup of baking flour and the process yields cup of super-fine baking flour for every one cup of baking flour u The super-fine baking flour sells for $9.50 per cup. Required Baking Flour Bread Flour Total 37,200 111,600 148,800 Physical measure of total production (in cups) Weighting 0.2500 0.7500 Joint costs allocated $ 33,775 $ 101,325 $ 135, 100 Requirement 1b. Allocate the $135, 100 joint cost to the super-fine baking flour and the bread flour using the sales value at splitoff method of joint-cost allocation. (Round the weights to four decimal places. Round the joint costs allocated to the nearest whole dollar.) Baking Flour Bread Flou Total Sales value of total production at splitoff Weighting Joint costs allocated
