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Requirement 1 . Calculate how the joint costs of $ 6 6 , 0 0 0 would be allocated between chocolate powder and milk chocolate
Requirement Calculate how the joint costs of $ 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.
Requirements
Calculate how the joint costs of $ would be allocated between chocolate powder
and milk chocolate under the following methods:
a Sales value at splitoff
b Physical measure gallons
c NRV
d Constant grossmargin percentage NRV
What are the grossmargin percentages of chocolate powder and milk chocolate under
each of the methods in requirement
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.
More info
Cocoa beans processed, pounds
Costs of processing cocoa beans to splitoff point including purchase of beans $
More info
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 Cocoa Mass Edibles Factory could have
sold the chocolatepowder liquor base for $ a gallon and the milkchocolate liquor base for $ a gallon.
It purchases cocoa beans and processes them into two intermediate products:
chocolatepowder liquor base and milkchocolate liquor base. These two
intermediate products become separately identifiable at a single splitoff point.
Every pounds of cocoa beans yields gallons of chocolatepowder liquor
base and gallons of milkchocolate liquor base.
The chocolatepowder liquor base is further processed into chocolate powder.
Every gallons of chocolatepowder liquor base yield pounds of chocolate
powder. The milkchocolate liquor base is further processed into milk chocolate.
Every gallons of milkchocolate liquor base yield pounds of milk
chocolate.
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