please help, cost accounting
5. lowa Soy Products (8SP) buys soybeans and processis Phom into othar soy peoduchs. Each son of soybesens that isP purchases for \$360 \$1.16 and soy od can be sold in bulk for 54 per gation. 1SP can prosess the 700 pounds of soy meal hato 750 pounds of soy cookies at an adificnal cont of 5300 . Fach pound of soy conkies can be sold for 52.16 per pound. The 180 gallons of soy oil can be packaged at a cost of 5270 and mase ints 720 puarts of Sayola. Elich cuant. of Soyola can be sold for 51.45. Read the requenvints. Requirement 1. Allocate the foint cost to the coollies and the Soyola uing the (a) Salec valde at splhat mothod and (b) NGEV method. a. First, alocate the joint cost using the Sales value at splitolf metrod. (Ricand the wnighes to svee decinal phache and joint costs to the nearest dollar.) b. Now abocate the joint cost to the cochies and the Soyola uning the NRV method. Round fre arights to tren decimat places and joint oosts to the nearest doflar) Requirement 2. Should iSp have processed oach of the products furthen What effed dses the alocation method have on this decinion? Begin by calculating the proft or loss that would occur if ISP processed the prodycts further, (Uhe parertivses or a minan sign for ionses.) ISP should (1) the soy maal because it 12 profe. They shadd (3) the soy oil because profiz will (4) Since the total joint cost is (5) under both allecation muthods, at (6) a relevant cost to the decisicon io seat at splitpfl or process further. 8. Requirements 1. Allocate the joint cost to the cookies and the Soyola using the followirg. a. Sales value at splitofl method b. NRV mothod 2. Should ISP have processed each of the producis further? What eflect does the allocatcon mithod harve on thit deciaion? 5. Iowa Soy Products (15P) buys sayboans and processes them imo other soy products. Each ton of soyteans that isp purthases foe s3e0) can be comvorted for an aditional $170 into 700 . bs of soy moal and 180 gallons of soy of. A pound of soy meal can be sold at sqiltoll for $1.16 and way cel can be sold in bulk for $4 par greon. ISP can process the 700 pounds of soy meal into 750 pounds of soy cookios at an additonal cost of $320. Each pound of say cookies can be sold for $2.16 por pound. The 180 galons of soy oil can be packagod at a cost of $270 and made into 720 quarts of Scyola, Each can of Soyola can be sold for $1.45. Read the recuiremants .. Requirement 1. Alocate the joint cost to the cockies and the Soyola using the (o) Sales value at spliciff method and (t) NSYV method. a. First, allocate the joint cost using the Sales value at splitoef method. (Round the weights to thene decimal placess and joint cosis to the nearest dotlar.) b. Now allocate the joint cost to the cookies and the Soycla using the NRV method. (Round the woights to three decimal ploces and pint costs to the nearest dollar.) Requirement 2. Should ISP have processed each of the products further? What ellect does the allocation method have on this decision? Begin by calculating the profit or loss that would occur if ISP processed the products further. (Use parentheses or a minus tign for losses.) ISP should (1) the soy meal because it (2) profit. They should (3) the soy oi because profit will (4) Since the total joint cost is (5) under both allocation methods, it (6) at splitiff or process further. a relevant cost to the decision to sell B: Requirements 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at spitoff method b. NPV method 2. Should ISP have processed each of the products further? What effect does the allocation method have on this decision
