Top Chef Foods produces two types of nicroasvable prodacts: beof-favored tamen and shrimp. flavored tamen. The two products share common inputs suth as nocdle and spices. The producton of ramen results in a waste product ceforred to as stock, which Top Cher dumps at negligible cosis in a local drainege area, in dune 2020 , the following date wore reporied for the production and sales of beet-flavored and shrimp-flavored ramen. Oue to the popuarity of is microwavable prodacts, Top Chef decides to add a new line products that targets dielers. These new products are produced by edding a special ingredient to dilute the ocginal ramen and are to be sold under the names Special B and Special S, respectively. Following are the monthly data for al the proclucts. IIfit (Cick the ioon is view the disla) IfII (Cick the iocen to view the monthly dats for ail products) Flead the fecuerements. Requirement 1. Cakulate Top Chefs gross margn percentage for 8 pecial 8 and Speoial 8 using the atforent methods for allocating the pint costs. a. Allocate the joint costs using the saies value at spliced mothod. Begin by entoring the anounts in the table and allocate the joint costa. (thinter the weightirg fo swo deeinal places.) Tes Chef Foods produces two types of microwavable products: beel-flavored ransen and shrimp-favorod ramen. The two products share common inputs such as noode and spices. The production of ramen resuets in a waste product referred to as stock, which Top Chef dumps at negig ble costa in a local drainage area. In June 2020, the folowing data were reported for the production and sales of beef-flavored and shrimp-flavoeed ramen: (Click the icon to view the data.) Due to the popularity of its microwivable products, Top Cnet cecides to add a new Ine of products than targets deters. These new products are groducod by adding a special ingrediont to diute the eriginal rameo and are to be soid unctar the names Special B and special S, respectively. Following are the montrly data for al the products. FI (Click the icon so view the moneny data for at products.). Flead the requirements: Compute the gross margin percentages using the saves value at spleoff method to allocate the pint costs. (Round the percentages to the nearest whole percont. Une parenthetes of a minus aign when entering applicable negative gross maggn arnounts and percentages.) b. Alocato the jont costs using the phyaical-measure method. Enter the amounts in the tabis and allocate the joint costs. (Eiver the woighting to two decimal places.) Compute the gross magin percentages using the physical-measures method to allocate the joint costs. (Round the percentages to the nearest wholi persert. Use parenthoses or a minus eign whan entering applicable negative greas margin amounts and percontages.) Top Chaf Foods produces two fypes of microwavable products beelfavored ranen and shrimp-flavored ramen. The two products share common inputs such as noodle and spices. Due to the popularsy of as mierowyalie produsts. Top Chef deodes to agd a cew ins of The producten of ramen results in a waste product relorred to as stock, which rop Chef durps at protucts that targets ceters. These new products are producod by atding a special imgitaitle costs in a local drainege area. In June 2080 , the follosing data were repolted for the novdent to dilute the ongha raman acd a'e so be soig under the names Soeclai and prodiotion and sales of beot-fawored and vhrimp-havored rames. (Click the icon lo view the data ) IIID (Cilck the keen to vew the monthily dua for at groducts) Reas the cecuirements Corrpute the gross margin peroentages using the physical-measures mothos to atocate the jont costs. Rhound the percenteges to the nearest whole percent. Use gareatiesas if a minus sign whine entering applicable negaive groes margin amounts and percentages.) c. Allocate the joint costs using the net realcuble value meghod Enter the anounts in the table and alocate the foint costs. (IDrter the weighting to two decinal piaces.). Net reairabie value (NRV) method: Top Chef Foods produces teo types of miorowavable products: beef.tavored ramen and ahimp-tlavered ramen. The two products share comron inputs such as noodle and spices. Due to the popularsy of its microwavatio prodocts, Top Chet decices to add a new ine of The production of ramen results in a waste product referred to as stock, which Too Chef dumps at negligitle oosts in a local drainage area. In June 2020, the following data were reporled for the products that targets deters. These new products are produced by asding a special production and sales of beel-favored and thrimp-flavored ramon: ngredient to diute the orginal famen and are to be sold under the names topecial 6 and Specia S, respectively Following are the risonthly data for all the producta (Click the ioon to view Phe data.) III (Cick the iosn to view the montrly data for all prosicis.) Read the recuirements. c. Alocate the joint costs using the net realizable value method: Enter the amounts in the table and alocato the joint costs. (Erter tho waighting to two decimal places.) Top Chel Foods produces two types of microwavable products: beel flovored ramen. and shrirpp-tavored ramen. The two products share common inguts such as noodle and spices. The production of ramen resuts in a waste product referred to as stock, which top Chef dumps at negligible oosts in a local drainape area. In June 2020 , the following data were reported for the production and saies of beof-flavored and shrimp-favored ramen: Due to the pepularity of its microwivabla prodacts, Top Chef decides to add a new ina of products that targels delers. These new products are prodvond by adding a soechal (Click the icon lo view the data) ingredient to alute the orginal ramen and wo to he sold under the names spesias ID and Special 5, respectively. Fellowing ace the manthly data for all the products: IfI (Cick the icon lo vow Bre manthy data for at producis) Read the requiceronts. Compute the gross margin percentages using the NfV mothed to allocate the joint costs. (found the percentagus to the nearest whob peroint. Use parentests or a minus sign when antaring: applicable negative grost margin amounts and percentages.) Requirement 2. Recently, Top Chel discovered that the stock it is duenging can be sold to catle ranchers at 56 per ton. ln a fypical monh wath the production levels shown above, 2,500 tons of atsok are produced and can be sold by liecurring marketing costs of 513,300 . Sherrie Dracet, a manogenent accourtant, points out that troathy the stack as a joies product and using the saies value at spliket method, the slock product would lose about 30,179 each month, so it should not be sold. How did Draper arrive at that fnal number? and ahrimp-favored ramen. The two products shacie products: beef. Eavored ramen The producton of ramen results in a wasse product formorted inputs such as noodle and spices. negigible coste in a local drainage area. In June 2020 - thed to as stock, which Top Chef dumpe in production and sales of beefflavored and shrimp f anvored tolowing data were reported for the Due to Ere poodlarily of its microwavable producis, Top Chef deodes to aod a new ine of products that targets dieters. These new products are profuced by adiing a apeciai ingredient to dilute the original rimen and are to be sold under the names 3pecial8 and I7 (Cick the ioon to view the data) Speciai S, respectively. Folowing are the monthly data far al the producta: III] (Click the icon to view the monithily data tor al proouctu) Fead the requarements are produced and can be sold by incuming marketing costs of $13.300. Shorrie Draper, a management accountant, points out that treating the stock as a joint prodect and using the sales varue at spillott method, the stock, product would lose about 56,179 each month, so it should not be sold. How did Draper arrive at that final number? A d. c. D. What do you think of her anaysis? Should Top Chet sell the stock? A. Alocating joint costs to products according to the sales valuo at splitoff is a valid mothod of cost alocilion. Based on Draper's analysis using the sales value at spltoff method, seling the stock would result in a reduction of Top Chers operating income by 56,179; tharafore, Top Chef should not sall the stock: and shrimp-favored ramen. The two products stiare commonis boofllovored zamen The production of ramen results in a waste product refermed to as stock as noodle and spices. negligble costs in a local drainage area. in dune 2020 , the folowing dota werte rop Chef dungs at Due to the poputarity of ta microwivable products. Top Chet dedichs to add a new line of products that largets desers. Theso new products are produced by adoing a scecal . production and sales of beel-ftivored and shrinp-fivored following data were reported for the (Click the icon to view the data) ingredient to dilute the onginal ramen and are to be sold under the nares 5 pecial B and Special S, respectively. Following are the monthly data for al the productsi (Cidck the icon to vew the moritily elasi for all prosucte.) Resd the teciements. What do you think of her analysis? Should Top Chef sell the stock? A. Alocating joint costs to products acoording to the sales value at splloif is a valid method of cost allocation. Based on Dracer's analysis using the salis value at apinett method, seling the stock would resut in a reduction of Top Chefs operating income by $6,179; therelore, Top Chet should not seil the stock. B. As exemplified in requirement 1, the different cost allocation methods resuts in different marpins reported by each of the products over the same accounting pericd. Bocauso of these differences, Draper must examine the effect on operating income from seling the stock product unser multiple cost allocsion mechods pros to determining whether or not the conipany should sell the product. C. The analysis is flawed. Jcint costs are always irrelevant in a process-further decision, Only incremental costs and revenuos past the splitolf poirt ave reievant in this caso, then, the revenues, $15,000, and the incremental costs, $13,300, from seling the stock feswe in an increase in Top Chef's operating income of $1,700. Therefore, Too Chof should seil the sibck. D. The analysis is fawed. Marketing costs are irrelevant so the decision. Only incremental costs and teverues prior to the spitoff point aro relevant in this case, then, the revenues. $15. co0. and the joint costs, $7,879, from seling the stock result in an increase in Top Chefs operating income of $7,121. Therefoce, Top Chof ahould sel the stock. Data table A. Alocating jaift cols to products acoordre to the laves val stock mold result in a restucton of Top Chuf eperating in 3. As exenplifed is requarement 1, the drenest ovet afocric these dffereoses. Draper must exatrine the plfect on octr; should sell the product E. The analysis is fawid. Jaint costs ane atways intelevari in the revenued, $515.000, and tre incremendal coses, 513.300C Top Chef Foods produces two types of nicroasvable prodacts: beof-favored tamen and shrimp. flavored tamen. The two products share common inputs suth as nocdle and spices. The producton of ramen results in a waste product ceforred to as stock, which Top Cher dumps at negligible cosis in a local drainege area, in dune 2020 , the following date wore reporied for the production and sales of beet-flavored and shrimp-flavored ramen. Oue to the popuarity of is microwavable prodacts, Top Chef decides to add a new line products that targets dielers. These new products are produced by edding a special ingredient to dilute the ocginal ramen and are to be sold under the names Special B and Special S, respectively. Following are the monthly data for al the proclucts. IIfit (Cick the ioon is view the disla) IfII (Cick the iocen to view the monthly dats for ail products) Flead the fecuerements. Requirement 1. Cakulate Top Chefs gross margn percentage for 8 pecial 8 and Speoial 8 using the atforent methods for allocating the pint costs. a. Allocate the joint costs using the saies value at spliced mothod. Begin by entoring the anounts in the table and allocate the joint costa. (thinter the weightirg fo swo deeinal places.) Tes Chef Foods produces two types of microwavable products: beel-flavored ransen and shrimp-favorod ramen. The two products share common inputs such as noode and spices. The production of ramen resuets in a waste product referred to as stock, which Top Chef dumps at negig ble costa in a local drainage area. In June 2020, the folowing data were reported for the production and sales of beef-flavored and shrimp-flavoeed ramen: (Click the icon to view the data.) Due to the popularity of its microwivable products, Top Cnet cecides to add a new Ine of products than targets deters. These new products are groducod by adding a special ingrediont to diute the eriginal rameo and are to be soid unctar the names Special B and special S, respectively. Following are the montrly data for al the products. FI (Click the icon so view the moneny data for at products.). Flead the requirements: Compute the gross margin percentages using the saves value at spleoff method to allocate the pint costs. (Round the percentages to the nearest whole percont. Une parenthetes of a minus aign when entering applicable negative gross maggn arnounts and percentages.) b. Alocato the jont costs using the phyaical-measure method. Enter the amounts in the tabis and allocate the joint costs. (Eiver the woighting to two decimal places.) Compute the gross magin percentages using the physical-measures method to allocate the joint costs. (Round the percentages to the nearest wholi persert. Use parenthoses or a minus eign whan entering applicable negative greas margin amounts and percontages.) Top Chaf Foods produces two fypes of microwavable products beelfavored ranen and shrimp-flavored ramen. The two products share common inputs such as noodle and spices. Due to the popularsy of as mierowyalie produsts. Top Chef deodes to agd a cew ins of The producten of ramen results in a waste product relorred to as stock, which rop Chef durps at protucts that targets ceters. These new products are producod by atding a special imgitaitle costs in a local drainege area. In June 2080 , the follosing data were repolted for the novdent to dilute the ongha raman acd a'e so be soig under the names Soeclai and prodiotion and sales of beot-fawored and vhrimp-havored rames. (Click the icon lo view the data ) IIID (Cilck the keen to vew the monthily dua for at groducts) Reas the cecuirements Corrpute the gross margin peroentages using the physical-measures mothos to atocate the jont costs. Rhound the percenteges to the nearest whole percent. Use gareatiesas if a minus sign whine entering applicable negaive groes margin amounts and percentages.) c. Allocate the joint costs using the net realcuble value meghod Enter the anounts in the table and alocate the foint costs. (IDrter the weighting to two decinal piaces.). Net reairabie value (NRV) method: Top Chef Foods produces teo types of miorowavable products: beef.tavored ramen and ahimp-tlavered ramen. The two products share comron inputs such as noodle and spices. Due to the popularsy of its microwavatio prodocts, Top Chet decices to add a new ine of The production of ramen results in a waste product referred to as stock, which Too Chef dumps at negligitle oosts in a local drainage area. In June 2020, the following data were reporled for the products that targets deters. These new products are produced by asding a special production and sales of beel-favored and thrimp-flavored ramon: ngredient to diute the orginal famen and are to be sold under the names topecial 6 and Specia S, respectively Following are the risonthly data for all the producta (Click the ioon to view Phe data.) III (Cick the iosn to view the montrly data for all prosicis.) Read the recuirements. c. Alocate the joint costs using the net realizable value method: Enter the amounts in the table and alocato the joint costs. (Erter tho waighting to two decimal places.) Top Chel Foods produces two types of microwavable products: beel flovored ramen. and shrirpp-tavored ramen. The two products share common inguts such as noodle and spices. The production of ramen resuts in a waste product referred to as stock, which top Chef dumps at negligible oosts in a local drainape area. In June 2020 , the following data were reported for the production and saies of beof-flavored and shrimp-favored ramen: Due to the pepularity of its microwivabla prodacts, Top Chef decides to add a new ina of products that targels delers. These new products are prodvond by adding a soechal (Click the icon lo view the data) ingredient to alute the orginal ramen and wo to he sold under the names spesias ID and Special 5, respectively. Fellowing ace the manthly data for all the products: IfI (Cick the icon lo vow Bre manthy data for at producis) Read the requiceronts. Compute the gross margin percentages using the NfV mothed to allocate the joint costs. (found the percentagus to the nearest whob peroint. Use parentests or a minus sign when antaring: applicable negative grost margin amounts and percentages.) Requirement 2. Recently, Top Chel discovered that the stock it is duenging can be sold to catle ranchers at 56 per ton. ln a fypical monh wath the production levels shown above, 2,500 tons of atsok are produced and can be sold by liecurring marketing costs of 513,300 . Sherrie Dracet, a manogenent accourtant, points out that troathy the stack as a joies product and using the saies value at spliket method, the slock product would lose about 30,179 each month, so it should not be sold. How did Draper arrive at that fnal number? and ahrimp-favored ramen. The two products shacie products: beef. Eavored ramen The producton of ramen results in a wasse product formorted inputs such as noodle and spices. negigible coste in a local drainage area. In June 2020 - thed to as stock, which Top Chef dumpe in production and sales of beefflavored and shrimp f anvored tolowing data were reported for the Due to Ere poodlarily of its microwavable producis, Top Chef deodes to aod a new ine of products that targets dieters. These new products are profuced by adiing a apeciai ingredient to dilute the original rimen and are to be sold under the names 3pecial8 and I7 (Cick the ioon to view the data) Speciai S, respectively. Folowing are the monthly data far al the producta: III] (Click the icon to view the monithily data tor al proouctu) Fead the requarements are produced and can be sold by incuming marketing costs of $13.300. Shorrie Draper, a management accountant, points out that treating the stock as a joint prodect and using the sales varue at spillott method, the stock, product would lose about 56,179 each month, so it should not be sold. How did Draper arrive at that final number? A d. c. D. What do you think of her anaysis? Should Top Chet sell the stock? A. Alocating joint costs to products according to the sales valuo at splitoff is a valid mothod of cost alocilion. Based on Draper's analysis using the sales value at spltoff method, seling the stock would result in a reduction of Top Chers operating income by 56,179; tharafore, Top Chef should not sall the stock: and shrimp-favored ramen. The two products stiare commonis boofllovored zamen The production of ramen results in a waste product refermed to as stock as noodle and spices. negligble costs in a local drainage area. in dune 2020 , the folowing dota werte rop Chef dungs at Due to the poputarity of ta microwivable products. Top Chet dedichs to add a new line of products that largets desers. Theso new products are produced by adoing a scecal . production and sales of beel-ftivored and shrinp-fivored following data were reported for the (Click the icon to view the data) ingredient to dilute the onginal ramen and are to be sold under the nares 5 pecial B and Special S, respectively. Following are the monthly data for al the productsi (Cidck the icon to vew the moritily elasi for all prosucte.) Resd the teciements. What do you think of her analysis? Should Top Chef sell the stock? A. Alocating joint costs to products acoording to the sales value at splloif is a valid method of cost allocation. Based on Dracer's analysis using the salis value at apinett method, seling the stock would resut in a reduction of Top Chefs operating income by $6,179; therelore, Top Chet should not seil the stock. B. As exemplified in requirement 1, the different cost allocation methods resuts in different marpins reported by each of the products over the same accounting pericd. Bocauso of these differences, Draper must examine the effect on operating income from seling the stock product unser multiple cost allocsion mechods pros to determining whether or not the conipany should sell the product. C. The analysis is flawed. Jcint costs are always irrelevant in a process-further decision, Only incremental costs and revenuos past the splitolf poirt ave reievant in this caso, then, the revenues, $15,000, and the incremental costs, $13,300, from seling the stock feswe in an increase in Top Chef's operating income of $1,700. Therefore, Too Chof should seil the sibck. D. The analysis is fawed. Marketing costs are irrelevant so the decision. Only incremental costs and teverues prior to the spitoff point aro relevant in this case, then, the revenues. $15. co0. and the joint costs, $7,879, from seling the stock result in an increase in Top Chefs operating income of $7,121. Therefoce, Top Chof ahould sel the stock. Data table A. Alocating jaift cols to products acoordre to the laves val stock mold result in a restucton of Top Chuf eperating in 3. As exenplifed is requarement 1, the drenest ovet afocric these dffereoses. Draper must exatrine the plfect on octr; should sell the product E. The analysis is fawid. Jaint costs ane atways intelevari in the revenued, $515.000, and tre incremendal coses, 513.300C