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The Western Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point. A, B, C, and D. Product
The Western 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: (3) (Click the icon to view the information.) Read the requirements. - Product A, 250,000 gallons - Product B, 95,000 gallons - Product C,45,000 gallons - Product D, 110,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $40,000. Western had no beginning or ending inventories. Sales of product C in November were $60,000. Products A, B, and D were further refined and then sold. Data related to November follow: Western had the option of selling products A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the November production: - Product A, \$40,000 - Product B, $30,000 - Product D, $70,000 Requirement 1. Compute the gross-margin percentage for each product sold in November, using the following methods for allocating the $40,000 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.)
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