The Cocoa Butter Edibles Factory manufactures and distributes chocolate products. i (Click the icon to view more information about Cocoa Butter.) Production and sales data for August 2017 are as follows (assume no beginning inventory): i (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate how the joint costs of $60,000 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.) Sales value of total Joint costs Chocolate powder Milk chocolate Total production at splitoff Weighting allocated i More Info 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 1,000 pounds of cocoa beans yields 30 gallons of chocolate-powder liquor base and 45 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 30 gallons of chocolate-powder liquor base yield 700 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 45 gallons of milk-chocolate liquor base yield 1,120 pounds of milk chocolate. Print Done A i Requirements 1. Calculate how the joint costs of $60,000 would be allocated between chocolate powder and milk chocolate under the following methods: a. Sales value at splitoff and m b. Physical measure (gallons) bund C. NRV (Net Realizable Value) d. Constant gross-margin percentage NRV 2. What are the gross-margin percentages of chocolate powder and milk chocolate under each of the methods in requirement 1? 3. Could Cocoa Butter Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations. Print Done i More Info Cocoa beans processed, 20,000 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $60,000 Production Chocolate powder 14,000 pounds Sales 6,300 pounds Selling Price Separable Processing Costs $6 per pound $ 2,965 Milk chocolate 22,400 pounds 14,200 pounds $10 per pound $ 34,000 I Cocoa Butter 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, Cocoa Butter Edibles Factory could have sold the chocolate-powder liquor base for $24 a gallon and the milk-chocolate liquor base for $64 a gallon. Print Done