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Homework: Extra Credit Save Score: 0 of 20 pts 10f 4 (0 complete) HW Score: 0%, 0 of 100 pts E16-23 (similar to) Question Help Innerva Soy Products (MSP) buys soybeans and processes them into other soy products. Each ton of soybeans that MSP purchases for $350 can be converted for an additional $210 into 550 lbs of soy meal and 180 gallions of soy oil. A pound of soy meal can be sold at splitoff for $1.36 and soy oil can be sold in bulk for $4 per gallon MSP can process the 550 pounds of soy meal into 650 pounds of soy cookies at an additional cost of $370. Each pound of soy cookies can be sold for $2.36 per pound. The 180 galons of soy oil can be packaged at a cost of $200 and made into 720 quarts of Soyola. Each quart of Soyola can be sold for $1.25 Requirements 1. Allocate the joint cost to the cookies and the Soyola using the following a. Sales value at splitoff method b. NRV method 23 2. Should MSP have processed each of the products further? What effect does the allocation method have on this decision? Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method to a. First, allocate the joint cost using the Sales value at spltoff method. (Round the weights to three decimal places and joint costs to the nearest dollar) CookiesSoyola Soy Meal Soy Oil Total Sales value of total production at splitoff Welghting Joint costs allocated Acc 17 Enter any number in the edit fields and then click Check Answer

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a Sales value at splitoff method: Cookies-SoyMeal Soyola-Soy Oil Total Sales value of total production at splitoff 550*1.36 180*4 748 720 1468 Weighting 0.51 0.49 1 Joint cost allocated (350+210 = 560) 285.34 274.66 560 b Net realizable value method Cookies-SoyMeal Soyola-Soy Oil Total Final sales value of total production 650*2.36 720*1.25 1534 900 2434 Deduct separable costs 370 200 570 Net realizable value 1164 700 1864 Weighting 0.62 0.38 1 Joint costs allocated 349.70 210.30 560 2 Cookies-SoyMeal Revenue if sold at splitoff 748 720 Process further Net realizable value 1164 700 Profit(loss) from processing further 416 -20 Process Further Sale at split off

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