The Cocoa Butter Edibles Factory manufactures and distributes chocolate products. More info Il 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 spinoff point Every 500 pounds of cocoh beans yields 20 gallons of chocolate-powder liquor base and 30 gations of milk-chocolate Squor base The chocolate-powder liquor base is further processed into chocolate powder. Every 20 gallons of chocolate-powder liquor base yield 630 pounds of chocolate powder. The milk chocolate liquor base is further processed into milk chocolate Every 30 gallons of milk chocolate liquor base yield 1,050 pounds of milk chocolate More info Production and sales data for August are as follows (assume no beginning inventory); Cocoa beans processed, 18,000 pounds Costs of processing cocoa beans to spitoff point (including purchase of beans), $45.000 Separable Chocolate powder Mi chocolate Production 22.680 pounds 37.800 pounds Sales Selling Price Processing Costs 6,300 pounds 12,500 pounds $7 per pound $1 $8 per pound $ 9.220 61,070 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, Cocoa Butter Edibles Factory could have sold the chocolate-powder liquor base for $25 a gallon and the milk-chocolate liquor base for $150 a gallon Chocolate powder Milk chocolate Total c. Alocate the joint costs using dotat) No Required 1. Calculate how the joint costs of $45,000 would be allocated between chocolate powder and milk chocolate under the following methods: Sales value at spitoff b. Physical measure (galions). 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 eighting amounts to four decimal places. Round the joint costs allocated to the m 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 500 pounds of cocoa beans yields 20 gallons of chocolate-powder liquor base and 30 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 20 gallons of chocolate-powder liquor base yield 630 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 30 gallons of milk-chocolate liquor base yield 1,050 pounds of milk chocolate. 1. Calculate how the joint costs of $45,000 would be allocated between chocolate powder and milk chocolate under the following methods: a. Sales value at splitoff b. Physical measure (gallons) 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. More info Cocoa beans processed, 18,000 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $45,000 Separable Selling Price Processing Costs Chocolate powder Production 22,680 pounds Sales 6,300 pounds $7 per pound $ Milk chocolate 37,800 pounds 12,500 pounds $8 per pound $ 9,220 61,070 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, Cocoa Butter Edibles Factory could have sold the chocolate-powder liquor base for $25 a gallon and the milk-chocolate liquor base for $150 a gallon. Print Done - X