Marigold There produces a variety of soy products from soybeans and has just finished its first year of operations. Michael, the product manager, wants to evaluate the profitability of each product. Michael knows the process works essentially like this: the soybeans are processed in the company's manufacturing facility at a cost of $434,000, yielding both soy oil and soymeal. The soy oil can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced and sales values at the split-off point are as follows. Quantity of soy oil 13,200 pounds Quantity of soymeal 46,800 pounds Sales price of soy oil Sales price of soy meal $38.00 per pound $1.50 per pound (a) Using the physical quantities method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Soy Oil Allocated joint costs SA Soymeal
Marigold There produces a variety of soy products from soybeans and has just finished its first year of operations. Michael, the product manager, wants to evaluate the profitability of each product. Michael knows the process works essentially like this: the soybeans are processed in the company's manufacturing facility at a cost of $434,000, yielding both soy oil and soymeal. The soy oil can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced and sales values at the split-off point are as follows. Quantity of soy oil 13,200 pounds Quantity of soymeal 46,800 pounds Sales price of soy oil Sales price of soy meal $38.00 per pound $1.50 per pound (a) Using the physical quantities method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Soy Oil Allocated joint costs SA Soymeal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Marigold There produces a variety of soy products from soybeans and has just finished its first year of operations. Michael, the
product manager, wants to evaluate the profitability of each product. Michael knows the process works essentially like this: the
soybeans are processed in the company's manufacturing facility at a cost of $434,000, yielding both soy oil and soymeal. The soy oil
can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced
and sales values at the split-off point are as follows.
Quantity of soy oil
13,200 pounds
Quantity of soymeal
46,800 pounds
Sales price of soy oil
Sales price of soy meal
$38.00 per pound
$1.50 per pound
(a)
Using the physical quantities method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 2 decimal places,
e.g. 0.25 and final answers to O decimal places, e.g. 5,125.)
Soy Oil
Allocated joint costs
SA
Soymeal
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