Overview of the process and results. An overview of the process and results for August 2017 are shown here (Note: The numbers are small to keep the focus on key concepts.) Joint Costs $1,800 JCRS Separable Costs Processing $150 Crude Oil 125 barrels $16 per barrel Hydrocarbons Processing ING4 Processing $115 Processing XGES $225 Get m Print Done NGL 75 barrels $15 per barrel Natural Gas 500 eqvt. barrels $1.30 per eqvt. barel Clear all Check a 12 three product sure method. G More info Starting August 2017, Sesnie Oil & Gas must report a separate product-line income statement for crude oil. One challenge facing Sesnie Oil & Gas is how to allocate the joint cost of producing the three separate salable outputs. Assume no beginning or ending inventory. Print Done - X e products e method. Ga Requirements 1. Allocate the August 2017 joint cost among the three products using the following: a. Physical-measure method b. NRV method. 2. Show the operating income for each product using the methods in requirement 1. 3. Discuss the pros and cons of the two methods to Sesnie Oil & Gas for making decisions about product emphasis (pricing, sell-or-process- further decisions, and so on). Print Done - X Part 1 of 5 Sesnie Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce crude oil, natural gas liquids (NGL), and natural gas (measured in liquid equivalents). (Click the icon to view the overview.) A fec natur Read Requirement 1. Allocate the August 2017 joint cost among the three products using the (a) Physical-measure method and (b) NRV method. First, allocate the August 2017 joint cost using the physical-measure method. (Round the weights to five decimal places and joint costs to the nem Physical measure of total production Weighting Joint costs allocated Crude Oil NGL Gas Total Points: 0 of 1 Save A federal law that has recently been passed taxes crude oil at 30% of operating income. No new tax is to be paid on natural gas liquid or natural gas. (Click the icon to view additional information.) Read the requirements. RV method. at costs to the nearest cent.) yas liqe Click the i Read the requir Requirement 1. Allocate the August 2017 joint cost among the three products using the (a) Physical-measure method and (b) NRV method. First, allocate the August 2017 joint cost using the physical-measure method. (Round the weights to five decimal places and joint costs to the nearest cent.) Crude Oil Physical measure of total production Weighting Joint costs allocated NGL Gas Total