O The Eastern 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: i (Click the icon to view the information.) Read the requirements. Requirement 1. Compute the gross-margin percentage for each product sold in December, using the different methods for allocating the $100,000 joint costs. a. Sales Value at Splitoff. Begin by entering the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Sales value of total Joint costs production at splitoff Weighting allocated A D Compute the gross margin percentage using the sales value at splitoff method to allocate the joint costs. (Enter a "0" for any cells with a zero balance. Round the percentages to two decimal places, X.XX%. Use parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Separable costs Gross margin Gross margin percentage b. Allocate the joint costs using the physical-measure method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Joint costs Physical measure of total production Weighting allocated A B D b. Allocate the joint costs using the physical-measure method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Joint costs Physical measure of total production Weighting allocated A B D Compute the gross margin percentage using the physical- measures method to allocate the joint costs. (Enter a "0" for any cells with a zero balance. Round the percentages to two decimal places, X.XX%. Use parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Senarable costs Choose from any list or enter any number in the input fields and then continue to the next question. ? Compute the gross margin percentage using the physical-measures method to allocate the joint costs. (Enter a "0" for any cells with a zero balance. Round the percentages to two decimal places, X.XX%. Use parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Separable costs Gross margin Gross margin percentage % c. Allocate the joint costs using the net realizable value method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Net realizable Joint costs value Weighting allocated Super A Super B Super D c. Allocate the joint costs using the net realizable value method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Net realizable Joint costs value Weighting allocated Super A Super B Super D Compute the gross margin percentage using the NRV method to allocate the joint costs. (Enter a "0" for any cells with a zero balance. Round the percentages to two decimal places, X.XX%. Use parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Separable costs Gross margin Gross margin percentage % % % % Requirement 2. Could Eastern have increased its December operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend. Determine the formula you will use to make your decision. Then enter the amounts for each product and determine the effect on operating income of the decision. (Enter negative effects with parentheses or a minus sign.) Effect on operating income from further processing = A - = B D is/are sold at their splitoff Operating income can be increased by point rather than processed further. More Info . . Product A, 300,000 gallons Product B, 100,000 gallons Product C, 50,000 gallons Product D, 50,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $100,000. Eastern had no beginning or ending inventories. Sales of product C in December were $50,000. 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 $ 100,000 $ 200,000 Super B 80,000 100,000 Super D 95,000 125,000 Eastern 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, $50,000 Product B, $30,000 Product D, $70,000 . . Print Done X 0 Requirements he 1. Compute the gross-margin percentage for each product sold in December, using the following methods for allocating the $100,000 joint costs: a. Sales value at splitoff b. Physical-measure c. NRV 2. Could Eastern have increased its December operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend. Print Done