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The Cacao Edibles Factory manufactures and distributes chocolate products. Production and sales data for August 2020 are as follows (assume no beginning (Click the icon to view more information about Cacao.) (Click the icon to view the data.) Read the 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.) The Cacao Edibles Factory manufactures and distributes chocolate products. Production and sales data for August 2020 are as follows (assume no beginning (Click the icon to view more information about Cacao.) inventory): (Click the icon to view the data.) Read the d. Constant gross-margin percentage NRV method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the percentage to four decimal places, X.XXXX%.) The overall gross-margin percentage for all joint products together is %. Now determine the formula to compute the joint costs allocated, then enter the appropriate amounts. (Round your answers to the nearest whole dollar.) Requirement 3. Could Cacao Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations. (Use parentheses or a minus sign when entering decreasing amounts.) Begin by determining the formula to compute the increase/(decrease) in operating income, then enter the appropriate amounts. More info 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. More info - Cocoa beans processed, 31,500 pounds - Costs of processing cocoa beans to splitoff point (including purchase of beans), $66,000 Cacao 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 2020, Cacao Edibles Factory could have sold the c. chocolate-powder liquor base for $42 a gallon and the milk-chocolate liquor base for $52 a gallon. all uctor
