The Cacao Bean Edibles Factory manufactures and distributes chocolate products

Production and sales data for August 2017 are as follows (assume no beginning inventory):

Requirement 1. Calculate how the joint costs of $66,000 would be allocated between chocolate powder and milk chocolate under the different methods.

It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-chocolate liquor base. These two intermediate products become separately identifiable at a single splitoff point. Every 2,100 pounds of cocoa beans yields 40 gallons of chocolate-powder liquor base and 60 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 40 gallons of chocolate-powder liquor base yield 660 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 60 gallons of milk-chocolate liquor base yield 1,080 pounds of milk chocolate. Cocoa beans processed, 31,500 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $66,000 Separable Production Sales Selling Price Processing Costs Chocolate powder 9,900 pounds 6,600 pounds $10 per pound $ 57,090 Milk chocolate 16,200 pounds 14,000 pounds $11 per pound $ 77,110 Cacao Bean 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 2017, Cacao Bean Edibles Factory could have sold the chocolate-powder liquor base for $42 a gallon and the milk-chocolate liquor base for $52 a gallon. 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.) Sales value of total Joint costs production at splitoff Weighting allocated Chocolate powder Milk chocolate Total b. Allocate the joint costs using the physical measure method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Physical measure of Joint costs total production Weighting allocated Chocolate powder Milk chocolate Total c. Allocate the joint costs using the net realizable value method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places. Round the joint costs allocated to the nearest whole dollar.) Net realizable Joint costs value Weighting allocated Chocolate powder Milk chocolate Total d. Constant gross-margin percentage NRV method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the percentage to four decimal places, X.XXXX%.) The overall gross-margin percentage for all joint products together is | %. Now determine the formula to compute the joint costs allocated, then enter the appropriate amounts. (Round your answers to the nearest whole dollar.) Total production costs Separable processing costs Joint costs allocated Chocolate powder Milk chocolate = Requirement 2. What are the gross-margin percentages of chocolate powder and milk chocolate under each of the methods in requirement 1? (Use parentheses or a minus sign when entering negative amounts. Round the percentages to the nearest hundredth percent, X.XX%.) Chocolate powder Milk chocolate a. Sales value at splitoff % % c. NRV % % d. Constant gross-margin percentage NRV % % Requirement 3. Could Cocoa Nibs Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations. (Use parentheses or a minus sign when entering decreasing amounts.) Begin by determining the formula to compute the increase/(decrease) in operating income, then enter the appropriate amounts. Increase/(decrease) in operating income Incremental revenue Separable processing costs Chocolate powder Milk chocolate =