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o enco sortate at 16-27 Alternative methods of joint-cost allocation, product-mix decisions. The Southern Oil Company buys crude vegetable oil. Refining this oil results in
o enco sortate at 16-27 Alternative methods of joint-cost allocation, product-mix decisions. The Southern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point: A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (December), the output at the splitoff point was as follows: Product A, 322,400 gallons - Product B, 119,600 gallons Product C, 52,000 gallons Product D, 26,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $96,000. Southern had no begin- ning or ending inventories. Sales of product in December were $24,000. Products A, B, and Dwere further refined and then sold. Data related to December are as follows: Separable Processing Costs to Make Super Products Revenues Super A $249,600 $300,000 Super B 102,400 160,000 Super D 152,000 160,000 Southern had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the December production: Product A, $84,000 Product B. $72,000 - Product D. 560,000 1. Compute the gross-margin percentage for each product sold in December, using the following meth- Required ods for allocating the $96,000 joint costs: a. Sales value at splitoff b. Physical-measure
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