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Status: A Moving to another question will save this response. Question 1 The Cocoa Company manufactures two cocoa products from a joint production process. The
Status: A Moving to another question will save this response. Question 1 The Cocoa Company manufactures two cocoa products from a joint production process. The two products are cocoa powder (CP) and cocoa butter (CB). A standard product run incurs joint costs of $480,000 and results in 60,000 units of CP and 180,000 units of CB. Each unit of CP sells for $2.25 and each unit of CB sells for $3. Required: 1. Calculate the amount of joint cost allocated to each product on a physical-units basis. (2 marks) 2. Calculate the amount of joint cost allocated to each product on a relative-sales-value basis. (2 marks) 3. Assume the cocoa butter is not marketable at split-off but must be further processed into sun screen at a cost of $500,000 per production run. During this process, 20,000 units are unavoidably lost; these spoiled units have no value. The units of sun screen are saleable at $8 per unit. The cocoa powder, although saleable immediately at the split-off point is processed further into instant cocoa mix that costs $140,000 per production run. The cocoa powder is then sold for $6 per unit. Using the net-realizable-value basis, calculate the amount of joint cost allocated to each product. (3 marks) 4. If the Cocoa Company chose not to process the cocoa powder beyond the split-off point, the contribution from the joint production process would increase or decrease by what amount? (3 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans, s... 10pt ... E x2 X2 IT The - + ABC O + O WORDS POWERED BY TINY MacBook Air 888 96 5 6 R T U
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