The Northern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (November), the output at the splitoff point was as follows: (Click the icon to view the information.) Road the requirements. More info Requirements - Product A,253,000 gallons - Product B, 92,000 gallons - Product C,69,000 gallons - Product D,46,000 gallons 1. Compute the gross-margin percentage for each product sold in November. using the following methods for allocating the $60,000 joint costs: a. Sales value at splitoff The joint costs of purchasing and processing the crude vegetable oil were b. Physical measure $60,000. Northern had no beginning or ending inventories. Sales of product c. NRV C in November were $60,000. Products A,B, and D were further refined and 2. Could Northern Oil have increased its November operating income by then sold. Data related to November follow: making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend. Northem had the option of selling products A, B, and D at the splitoff point. This altemative would have yielded the following revenues for the November production: - Product A, $50,000 - Product B, $30,000 - Product D. $60,000 The Northern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (November), the output at the splitoff point was as follows: (Click the icon to view the information.) Read the requirements. Requirement 1. Compute the gross-margin percentage for each product sold in November, using the following methods for allocating the $60,000 joint costs: a. Sales Value at Splitoff. Begin by entering the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) The Northern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (November), the output at the splitoff point was as follows: (Click the icon to view the information.) Read the requirements. Compute the gross margin percentage using the sales value at splitoff method to allocate the joint costs. (Enter a "o" for any cells with a zero balance. Round the percentages to two decimal places, X.XX\%. Use parentheses or a minus sign when entering negative amounts.) The Northern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B, and D can individually be further refined into Super A, Super B, and Super D. In the most recent month (Novernber), the output at the splitoff point was as follows: (Click the icon to view the information.) Read the requirements. Compute the gross margin percentage using the physical measures method to allocate the joint costs. (Enter a "0" for any cells with a zero balance. Round the percentages to two decimal places, XXXX%. Use parentheses or a minus sign when entering negative amounts.) Requirement 2. Could Northem Oil have increased its November operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating ncome of any changes you recommend. Determine the formula you will use to make your decision. Then enter the amounts for each product and determine the effect on operating income of the decision. (Enter negative effects with varentheses or a minus sign.)
