Ontario Soy Products $($OSP$)$ buys soy beans and processes them into other soy products. Each tonne of soy beans that OSP purchases for $$320$ can be corverted for an additional $$170$ into $650$ ibs of soy meal and $120$ gallons of soy oil. A pound of soy meal can be sold at splitoff for $$1\mathrm{.}12,$ and soy oil can be sold in bulk for $$4\mathrm{.}75$ per gallon.

OSP can process the $650lbs$ of soy meal into $750lbs$ of soy cookies at an additional cost of $$350.$ Each pound of soy cookies can be sold for $$2\mathrm{.}12$ per pound. The $120$ gallons of soy oil can be packaged at a cost of $$240$ and made into $480$ quarts of Soyola. Each quart of Soyola can be sold for $$1\mathrm{.}15.$

Required

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

a$.$ Sales value at splitoff method

b$.$ NRV method

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

Requirement $1$a$.$ Allocate the joint cost to the cookies and the Soyola using the sales value at splitoff method. $($Round the weightings to three decimal places and joint costs to the nearest dollar.$)$

$\backslash$table$[[$Sales value of total production at splitoff,$\backslash$table$[[$Cookies$/$ Soy Soyola$/$ Soy$],[$Meal$]],$Total$],[$$$,728,,570,$$$,1,298],[,,0\mathrm{.}561,,0\mathrm{.}439,,1\mathrm{.}000],[$Joint costs allocated,$$,{275}^{TT},,{215}^{TT}s,,490]]$

b$.$ Allocate the joint cost to the cookies and the Soyola using the net realizable value method. $($Round the weightings to three decimal places and joint costs to the nearest dollar.$)$

$\backslash$table$[[,$Cookies,Soyola,Total$],[$Final sales value of total production,,,$],[$Deduct separable costs,,,$],[$Net realizable value,,,$],[$Weighting$,,,],[$Joint costs allocated,,,$]]$