gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.44 and soy oil can be sold in bulk for $4.25 per gallon. OSP can process the 650 pounds of soy meal into 700 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.44 per pound. The 80 gallons of soy oil can be packaged at a cost of $250 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.55. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three c Requirements Cookies/ Soyola/ Soy Meal Soy Oil Total Sales value of total production at splitoff 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method Weighting Joint costs allocated 2. Should OSP have processed each of the products further? What effect does the allocation method have on this decision?

gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.44 and soy oil can be sold in bulk for $4.25 per gallon. OSP can process the 650 pounds of soy meal into 700 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.44 per pound. The 80 gallons of soy oil can be packaged at a cost of $250 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.55. Read the requirements. Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method. a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three c Requirements Cookies/ Soyola/ Soy Meal Soy Oil Total Sales value of total production at splitoff 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method Weighting Joint costs allocated 2. Should OSP have processed each of the products further? What effect does the allocation method have on this decision?

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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