y customers and NU e Tatry lound that Gde A pes decided to decrease the weight factor for Grade A apples to 3.07 How would that allocation of cost to Grade A apples? How would it affect the allocation or remaining grades? a that affect the of cost to the ECTIVE TONE 7.9 sales-value mation about the Cornerstone Exercise 7.9 Allocating Joint Costs Using the Sales-Value-at-Split Method Refer to Cornerstone Exercise 7.7. Assume that Orchard Fresh, Inc., uses the sale split-off method of joint cost allocation and has provided the following information four grades of apples: Grades Pounds Price at Split-Off (per lb.) Grade A 1,600 $4.00 Grade B 5.000 8.000 0.50 Applesauce 5.400 Total 20.000 1.00 Slices 0.10 Total joint cost is $18,000. Required: 1. Allocate the joint cost to the four grades of apples using the sales-value-at-split-off method (Carry out the percent calculations to four significant digits. Round all cost allocations to the nearest dollar.) 2. What if the price at split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B apples? How would it affect the allocation of cost to the remaining grades? ECTIVE 6 ONE 7.10 Cornerstone Exercise 7.10 Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be proo essed further. Information on one batch of the three products is as follows: Further Processing Eventual Market Product Gallons Cost per Gallon Price per Gallon L Ten 3,500 $0.50 Triol 4.000 5.00 Pioze 2,500 1.50 6.00 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method (Round the percentages to four significant digits. Round all cost allocations to the neares dollar.) 2. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? $2.00 1.00