Rayston, Inc., is a large food-processing company. It processes 156,000 pounds of peanuts in the peanuts department at a cost of $219,200 to yield 22,000 pounds of product A, 70,000 pounds of product B, and 17,000 pounds of product C. i (Click the icon to view the information.) The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows: (Click the icon to view the overview.) Read the requirements Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Let's begin by determining the formula to compute the joint costs allocated for product C by entering the appropriate amounts. Joint costs allocated Figure X Requirements Joint Costs Separable Costs $219,200 22,000 pounds Salting Department Processing $40.000 Salted Peanuts 22,000 pounds $10/16 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Compute unit costs per pound for products A, B, and C, treating all three as joint products and allocating joint costs by the NRV method. 2. Peanuts Department Processing of 156,000 16 Raw Peanuts 70,000 pounds $6/16 Print Done Paste Department Processing $12,200 Peanut Butter 17,000 pounds $6/16 17,000 pounds Splitoff Point Product A is processed further in the salting department at a cost of $40,000. It yields 22,000 pounds of salted peanuts, which are sold for $10 per pound. Product B (raw peanuts) is sold without further processing at $6 per pound. Product C is considered a byproduct and is processed further in the paste department at a cost of $12,200. It yields 17,000 pounds of peanut butter, which are sold for $6 per pound. Print Done