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Nervana Soy Products (NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $350 can be converted for an additional $210 into 650 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.32 and soy oil can be sold in bulk for $4.5 per gallon NSP can process the 650 pounds of soy meal into 750 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.32 per pound. The 100 gallons of soy oil can be packaged at a cost of $230 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.15. Read the requirements Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitol method and (b) NRV method a. First, allocate the joint cost using the sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dollar). Cookies Soyolal Requirements Soy Meal Soy Oil Total Sales value of total production at splitoff Weighting 1. Alocate the joint cost to the cookies and the Soyola using the following: Joint costs allocated a Sales value at splitoff method b. NRV method b. Now allocate the joint cost to the cookies and the Soyola using the NRV method. (Round 2. Should NSP have processed each of the products further? What affect does Cookies Soyola Total the allocation method have on this decision? Final sales value of total production Deduct separable costs Print Done Net realizable value Weighting Joint costs allocated lervana Soy Products (NSP) buys soybeans and processes them into other soy products. Each ton of soybeans that NSP purchases for $350 can be converted 210 into 650 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.32 and soy oil can be sold in bulk for $4.5 per gallon ISP can process the 650 pounds of soy meal into 750 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.32 per 00 gallons of soy oil can be packaged at a cost of $230 and made into 400 quarts of Soyola. Each quart of Soyola can be sold for $1.15. Read the requirements Cookies Soyola Total Final sales value of total production Deduct separable costs * Requirements Net realizable value Weighting Joint costs allocated 1. Allocate the joint cost to the cookies and the Soyola using thi a. Sales value at splitoff method b. NRV method 2. Should NSP have processed each of the products further? W the allocation method have on this decision? Requirement 2. Should NSP have processed each of the products further? What affect dog Begin by calculating the profit or loss that would occur if NSP processed the products furthe Cookies! Soyola/ Soy Meal Soy Oil Sell at splitoff: Revenue Process further : NRV Profit (Loss) from processing further NSP should the soy meal because it profit. They should Print Done the soy oil because profit will Since the total joint cost is under both allocation methods, it a relevant cost to the decision to sell at splitoff or process further Enter any number in the edit fields and then continue to the next

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