Question No. 1CLO 4Siqa company buys soybeans and processes them into other soy products. Each ton of soybeansthat Siqa purchases for $340 can be converted for an additional $200 into 600 pounds of soymealand 180 gallons of soy oil. A pound of soymeal can be sold at split-off point for $1.25 and soy oilcan be sold in bulk for $4.75 per gallon.Siqa company can process the 600 pounds of soymeal into 825 pounds of soy cookies at anadditional cost of $480. Each pound of soy cookies can be sold for $3.10 per pound. The 180gallons of soy oil can be packaged at a cost of $270 and made into 720 quarters of soyolo. Eachquarter can be sold for $1.75.Required:1. Allocate the joint cost to the cookies and soyolo using the following:a. Sales value at split-off point method.b. Net Realizable Method (NRVM)2. Do you recommend Siqa company to process soymeal and soy oil further or to be sold at split-off point.

Joint cost is the collection of expenses incurred over raw material, labour and processing of the…

1. Allocate the joint cost to the cookies and soyolo using the following: a. Sales value at split-off point method. b. Net Realizable Method (NRVM) 2. Do you recommend Siqa company to process soymeal and soy oil further or to be sold at split- off point.

1. Allocate the joint cost to the cookies and soyolo using the following: a. Sales value at split-off point method. b. Net Realizable Method (NRVM) 2. Do you recommend Siqa company to process soymeal and soy oil further or to be sold at split- off point.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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