Requirements 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method 2. Should DSP have processed each of the products further? What effect does the allocation method have on this decision? Imnovation Soy Products (DSP) buys soybeans and procossos them into other soy products. Ench ton of soybeana that DSP purchasos for $350 can be convertod for an additonal $190 inlo 525 fte of soy meal and 100 gallons of woy oil. A pound of noy meal can be sold at splitof lor $1.08 and sey ol can be sold in bu kik for $4 per gallon. DSP can process the 525 pounds of soy meal into 575 pounds of aoy cookios at an addifional cost of $360. Ench pound of soy cockies can be sold for $2.08 per pound. The 100 gallons of soy oil can be pockaged at a cont of $250 and made into 400 euarts of Sayola. Ench quart of Seyola can be sold for 51.15 . Riend the Requirement 1. Alocain the joint cost to the cockies and the Soyola uning the (a) Snlos vilue at aplitell method and (b) NRV mothod: a. Fint, allocnte the joint cost uaing the Solen value at splatif method. (Round the weights to fhree decimal places and joint conts to the nearest dollar.) b. Now allocole the joint cost to the cookies and the Soyola using the NFV mothod. (Round the wnights to throe docimal places and joint coits to the nearnst dollar) Requirement 2. Should DSP have processed each of the products further? What effect does the allocation method have on this deciaion? Begin by calculating the profit or loss that would occur if DSP processed the peceducts further: (Uee parentheses or a minus sign for losses) Innovation Soy Products (DSP) buys soybenrs and processos them into other scy products. Ench ton of soybenre that DSP purchasos for $350 can be convertod far an addiferal $190 into 525 ben of soy moal and 100 gallons of soy oil. A pound of soy meal can be sold at splitof for 51.08 and soy oil can be sold in bulk for $4 per galion. DSP can process the 525 pounds of soy meal inte 575 pounds of soy cookies at an addtional cost of $360. Ench pound of noy cookies aan be sold for 32.06 per pound. The 100 gallorn of soy of can bo packnged at a cost of $250 and made into 400 quarts of Scyola. Each quart of Soyola can be sold for $1.15 Pned the roculremonts Requirement 2. Should DSP have procossed each of the producis further? What effect does the alocation method have on this deoision? Begin by calculating the profit or loss that would ocour It DSp procoseed the products firther (Use parentheses or a mirus sign for lotses.) DSP should the soy meal because a profit. They thould sey oll because proft will Since the total joint cost is ander both allocation mehods, a a relevant cost to ese deosion lo sell at spiliof or process further
