of soy meal and $140$ gallons of soy oil. A pound of soy meal can be sold at splitoff for $$1$ and soy oil can be sold in bulk for $$4$ per gallon. be packaged at a cost of $$220$ and made into $560$ quarts of Soyola. Each quart of Soyola can be sold for $$1\mathrm{.}35.$

Read the equiremen

Requirement $1.$ Allocate the joint cost to the cookies and the Soyola using the $($a$)$ Sales value at splifoff method and $($b$)$ NRV method.

a$.$ First, allocate the joint cost using the Sales value at splitoff method. $($Round the weights to three decimal places and joint costs to the nearest dollar.$).$

$\backslash$table$[[,$Cookies$/$ Soyola$/,],[$Sales value of total production at splitoff,Soy Meal Soy Oll,$],[$Weighting$,,],[$Joint costs allocated,,$]]$

Final sales value of total production

Deduct separable costs

Net realizable value

Woighting

Joint costs allocated

Requirement $2.$ Should NSP have processed each of the products further? What effect does the allocation method have on this decision?

Begin by calculating the profit or loss that would occur if NSP processed the products further. $($Use parentheses or a minus sign for losses.$)$

arspitorifor $$1$ and soy oil can be sold in bulk for $$4$ per gallon. and made into $560$ quarts of Soyola. Each quart of Soyola can be sold for $$1\mathrm{.}35$

Final sales value of total production

Requirement $2.$ Should NSP have processed each of the products further? What effect does the allocation method have on this decision?

Begin by calculating the profit or loss that would occur if NSP processed the products further. $($Use parentheses or a minus sign for losses.$)$

$\backslash$table$[[,$Cookies$/,$Soyola$/],[,$Soy Meal,Soy Oil$],[$Sell at splitoff : Revenue,,$],[$Process further : NRV$,,],[$Profit $($Loss$)$ from processing further,,$]]$

NSP should $$ the soy meal because it $$ profit. They should $$ the soy oil because profit will $$

Since the total joint cost is

$$ under both allocation methods, it $$ a relevant cost to the decision to sell at splitoff or process further.

Requirements

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

a$.$ Sales value at splitoff method

b$.$ NRV method

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