The Horn Company operates a simple chemical process to convert a single material into three separate items, referred to During 2017, the selling prices of the items and the total amounts sold were as follows: here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point. (Click the icon to view the sales information.) (Click the icon for additional information.) Read the requirements. Requirement 1. Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2017, using the (a) NRV, and the (b) constant gross-margin percentage NRV cost allocation methods. (a) Start with the NRV cost allocation method. Begin by computing the net realizable value for total production at the point of splitoff and the weighting for each product. (Enter the weights to two decimal places.) X Y Z Total i More Info Net realizable value of total production at splitoff Weighting .X - 75 tons sold for $1,800 per ton Y - 225 tons sold for $1,300 per ton .Z - 280 tons sold for $800 per ton Requirements The total joint manufacturing costs for the year were $328,000. Horn spent an additional $120,000 to finish product Z. There were no beginning inventories of X, Y, or Z. At the end of the year, the following inventories of completed units were on 1. Compute the cost of inventories of X, Y, and Z for balance sheet purposes and the cost hand: X, 175 tons; Y, 75 tons; Z, 70 tons. There was no beginning or ending work of goods sold for income statement purposes as of December 31, 2017, using the in process. following joint-cost-allocation methods: More Info a. NRV (Net realizable value) method b. Constant gross-margin percentage NRV method Print Done 2. Compare the gross-margin percentages for X, Y, and Z using the two methods given in requirement 1. Products X and Y are ready for sale immediately upon splitoff without further Enter any ny processing or any other additional costs. Product Z. however, is processed further before being sold. There is no available market price for Z at the splitoff point. The Print Done selling prices quoted here are expected to remain the same in the coming year. Check Answer 13 parte