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NW Flour Company buys 1 input of standard flour and refines it using a special sifting process to 3 cups of baking flour and 9
NW 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, NW bought 11,200 inputs of flour for $88,500. NW spent another $47,700 on the special sifting process. The baking flour can be sold for $3.65 per cup and the bread flour for $4.95 per cup. 1 NW 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 used. The super-fine baking flour sells for $9.90 cup. $ 498,960 166,320 $ 33,600 $ $ 0 Required Final sales value of total production Deduct separable costs Net realizable value at splitoff Weighting Joint costs allocated $ 132,720 $ 498,960 $ 631,680 0.2100 0.7900 $ 28,616 $ 107,584 $ 136,200 Requirement 1d. Allocate the $136,200 joint cost to the super-fine baking flour and the bread flour using the constant gross-margin percentage NRV method of joint-cost allocation. (Round the gross margin percentage to two decimal places, X.XX%. Round your answers to the nearest whole dollar.) Super-Fine Baking Flour Bread Flour Total Final sales value of total production Deduct gross margin, using overall gross- margin percentage of sales Total production costs Deduct separable costs loint costs allocated Enter any number in the edit fields and then click Check
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