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The Southern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product
The Southern 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 (December), 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 December, using the different methods for allocating the $100,000 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.) Sales value of total Joint costs Weighting Requirements production at splitoff allocated 1. Compute the gross-margin percentage for each product sold in December, using the following methods for allocating the $100,000 joint costs: a. Sales value at splitoff b. Physical-measure c. NRV Could Southern have increased its December operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend. 2. Print Done The Southern 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 (December), 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 December, using the different methods for allocating the $100,000 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.) Sales value of total Joint costs Weighting Requirements production at splitoff allocated 1. Compute the gross-margin percentage for each product sold in December, using the following methods for allocating the $100,000 joint costs: a. Sales value at splitoff b. Physical-measure c. NRV Could Southern have increased its December operating income by making different decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend. 2. Print Done
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