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please get it right !!! Sweeney Oil & Gas, a large energy conglomerate. jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICRB, INGA,
please get it right !!!
Sweeney Oil \& Gas, a large energy conglomerate. jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICRB, INGA, and A federal law that has recently been passed taxes crude oll at 30% of XGE3. These intermediate products are further processed separately to produce operating income. No new tax is to be paid on natural gas liquid or natural gas. crude oil, natural gas liquids (NGL), and natural gas (measured in liquid equivalents). (Click the ioon to view addielonal information.) [Click the icon to viow the overview.] Read the requirements- 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 fo the nearest cent.) 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 concents. More info Starting August 2017, Sweeney Oil \& Gas must report a separate product-line income statement for crude oil. One challenge facing Sweeney Oil \& Gas is how to allocate the joint cost of producing the three separate salable outputs. Assume no beginning or ending inventory. 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 Sweeney Oil \& Gas for making decisions about product emphasis (pricing, sell-or-processfurther decisions, and so on) Step by Step Solution
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