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One or more of my answers in Requirement 1 are incorrect. Please identify point or points of error given the information. The Eden Oil Company
One or more of my answers in Requirement 1 are incorrect. Please identify point or points of error given the information.
The Eden 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 individu 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 (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 $40,000 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 More Info production at splitoff Weighting allocated 40,000 30,000 60,000 70,000 200,000 0.2000 $ 0.1500 0.3000 0.3500 1.0000 8,000 4500 18000 24500 55000 A S .Product A 250,000 gallons Product B, 95,000 gallons .Product C, 45,000 gallons .Product D, 110,000 gallons The joint costs of purchasing and processing the crude vegetable oil were 540,000. Eden had no beginning or ending inventories. Sales of product C in December were $60,000. Products A, B, and D were further refined and then sold. Data related to December are as follows: Separable Processing Costs to Make Super Products Revenues Super AS Super B Super D 170,000 $ 60,000 5,000 250,000 100,000 25,000 Eden 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, $40,000 .Product B, S30,000 .Product D, $70,000Step by Step Solution
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