The Cocoa Bean Edibles Factory manufactures and distributes chocolate products.

Production and sales data for August are as follows $($assume no beginning inventory$)$: $($Click the icon to view more information about Cocoa Bean.$)$

$($Click the icon to view the data.$)$

Required

Requirement $1.$ Calculate how the joint costs of $$52,000$ 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.$)$

$\backslash$table$[[*,\backslash$table$[[$Sales value of total$],[$production at splitoff$]],$Weighting,$\backslash$table$[[$Joint costs$],[$allocated$]]],[$Chocolate powder$],[$Milk chocolate$],[$Total$,,,]]$

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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 $1,600$ pounds of cocoa beans yields $25$ gallons of chocolate$-$powder liquor base and $100$ gallons of milk$-$chocolate liquor base.

The chocolate$-$powder liquor base is further processed into chocolate powder. Every $25$ gallons of chocolate$-$powder liquor base yield $690$ pounds of chocolate powder. The milk$-$chocolate liquor base is further processed into milk chocolate. Every $100$ gallons of milk$-$chocolate liquor base yield $1,110$ pounds of milk chocolate.

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$-$Cocoa beans processed, $24,000$ pounds

Costs of processing cocoa beans to splitoff point $($including purchase of beans$),$ $$52,000$

$\backslash$table$[[,$Production,Sales,Selling Price,$\backslash$table$[[$Separable$],[$Processing Costs$]]],[$Chocolate powder,$10,350$ pounds,$6,900$ pounds,$$11$ per pound $$,18,150],[$Milk chocolate,$16,650$ pounds,$14,300$ pounds,$$8$ per pound $$,78,000]]$

Cocoa 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, Cocoa Bean Edibles Factory could have sold the chocolate$-$powder liquor base for $$16$ a gallon and the milk$-$chocolate liquor base for $$6$ a gallon.