QUESTIONS:

1. How much of the joint costs should be allocated to All Natural Almond Butter under the physical unit method?

2. How much of the joint costs should be allocated to All Natural Almond Butter under the sales value

at split-off method?

3. How much of the joint costs should be allocated to Chocolate Almond Delights under the NRV method?

Assuming every gallon of All Natural Almond Butter and every pound of Chocolate Almonds Delights were sold:

4. What would gross profit be for All Natural Almond Butter under the physical unit method?

5. What would gross profit be for Chocolate Almond Delights under the sales value at split-off method?

6. What would gross profit be for Chocolate Almond Delights under the NRV method?

7. What is the incremental profit (or loss) for Almond Delights when Premium almonds are further processed into

Chocolate Almond Delights? (Enter a loss in parentheses.)

8. What is the incremental profit (or loss) for Almond Delights when Choice almonds are further processed into

All Natural Almond Butter? (Enter a loss in parentheses.)

Problem A Almond Delights is an almond grower. They have two primary products Premium Almonds and Choice Almonds. One acre of almond trees yields about 600 pounds of Premium and 1,400 pounds of Choice almonds at a cost of $6,000. Apound of Premium Almonds can be sold for $6.68. A pound of Choice can besold for $4.28. Almond Delights further processes the 1,400 pounds of Choice almonds into 175 gallons of All Natural Almonod Butter at an additional cost of $2,500. All Natural Almond Butter is sold for $40 pergallon. The 400 pounds of Premium Almonds is further processed into 450 pounds of Chocolate Almond Delights at an additional cost of $900. Each pound of Chocolate Almond Delights is sold for $12