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SE Flour Company buys 1 input of standard four and refines it using a special sitting process to 3 cups of baking four and 9
SE Flour Company buys 1 input of standard four and refines it using a special sitting process to 3 cups of baking four and 9 cups of bread four. in May. SE bought 12400 inputs of fout for Sab, 500 . SE spent another $47,900 on the special sifting peocess. The baking four can be sold for $3.50 per cup and the bread flour for $4,75 per cup. SE puts the baking four through a second process so it is super fine. This costs an addstional 51 per cup of baking four and the process yields 21 cup of supeedine baking flour lor every ene as of baking flour used. The super-fine baking flour sels for $9.70 per cup. Reavited Requirement 1a. Allocate the $136,400 joint cost to the super-fine baking flour and the bread four using the physical-measure method (ssing cups) of jont-cost alocaton (Round the waights ta fout Requirement 1a. Allocate the 5136,400 ported the neareat whole dolar.) 1. Allocate the $136,400 joint cost to the super-fine baking flour and the bread flour using the following: a. Physical-measure method (using cups) of joint-cost allocation b. Sales value at splitoff method of joint-cost allocation c. NRV method of joint-cost allocation d. Constant gross-margin percentage NRV method of joint-cost allocation 2. Each of these measures has advantages and disadvantages; what are they? 3. Syime claim that the sales value at splitoff method is the best method to use. Discuss the logic behind this claim
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