The Sunshine 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 $96,000 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 production at splitoff Weighting allocated A B C D 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, XXX%. Uso parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Separable costs Gross margin Gross margin percentage % % b. Allocate the joint costs using the physical measure method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) b. Allocate the joint costs using the physical measure method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Physical measure of Joint costs total production Weighting allocated A 00 P B D C 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, X.XX%. Use parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Separable costs Gross margin Gross margin percentage % % Gross margin percentage % % % c. Allocate the joint costs using the net realizable value method. Enter the amounts in the table and allocate the joint costs. (Enter the weights to four decimal places.) Net realizable Joint costs value Weighting allocated Super A Super B Super D Compute the gross margin percentage using the NRV method to allocate the joint costs. (Enter a "O" for any cells with a zero balance. Roun the percentages to two decimal places, XXX%. Use parentheses or a minus sign when entering negative amounts.) Super A Super B Super D Revenues Joint costs Separable costs Gross margin Gross margin percentage Requirement 2. Could Sunshine 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 income 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 parentheses or a minus sign.)
