Please help with each requirement, and thank you!
The Cocoa Mass Edibles Factory manufactures and distributes chocolate products. (Click the icon to view more information about Cocoa Mass.) Production and sales data for August 2017 are as follows (assume no beginning inventory): (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate how the joint costs of $66,000 would be allocated between chocolate powder and milk chocolate under the different methods. a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Sales value of total Joint costs production at splitoff Weighting allocated - X More Info Chocolate powder Milk chocolate Total It purchases cocoa beans and processes them into two intermediate products: chocolate powder liquor base and milk-chocolate liquor base. These two intermediate products become separately identifiable at a single splitoff point. Every 2,100 pounds of cocoa beans yields 40 gallons of chocolate-powder liquor base and 60 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 40 gallons of chocolate-powder liquor base yield 660 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 60 gallons of milk-chocolate liquor base yield 1,080 pounds of milk chocolate. - X More Info Requirements Cocoa beans processed, 31,500 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $66,000 Separable Production Sales Selling Price Processing Costs Chocolate powder 9,900 pounds 6,600 pounds $10 per pound $ 57,090 Milk chocolate 16,200 pounds 14,000 pounds $11 per pound $ 77,110 Cocoa Mass Edibles Factory fully processes both of its intermediate products into chocolate powder or milk chocolate. There is an active market for these intermediate products. In August 2017, Cocoa Mass Edibles Factory could have sold the chocolate-powder liquor base for $42 a gallon and the milk-chocolate liquor base for $52 a gallon. C. 1. Calculate how the joint costs of $66,000 would be allocated between chocolate powder and milk chocolate under the following methods: a. Sales value at splitoff b. Physical measure (gallons) NRV (Net Realizable Value) d. Constant gross-margin percentage NRV 2. What are the gross-margin percentages of chocolate powder and milk chocolate under each of the methods in requirement 1? 3. Could Cocoa Mass Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations
