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Question $4,$ P$17-34($similar to$)$

Part $8$ of $15$

Part $8$ of $15$

The Creme de Cacao Edibles Factory manufactures and distributes chocolate products.

$($Click the icon to view more information about Creme de Cacao.$)$

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Creme de Cacao Edibles Factory fully processes both of its intermediate products into chocolate powder or milk

chocolate. There is an active market for these intermediate products. In August $2020,$ Creme de Cacao Edibles Factory

could have sold the chocolate$-$powder liquor base for $$29$ a gallon and the milk$-$chocolate liquor base for $$87$ a gallon.

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It purchases cocoa beans and processes them into two intermediate products:

chocolate$-$powder liquor base and milk$-$chocolate liquor base. These two

intermediate products become separately identifiable at a single splitoff point.

Every $1,200$ pounds of cocoa beans yields $30$ gallons of chocolate$-$powder liquor

base and $90$ gallons of milk$-$chocolate liquor base.

The chocolate$-$powder liquor base is further processed into chocolate powder.

Every $30$ gallons of chocolate$-$powder liquor base yield $640$ pounds of chocolate

powder. The milk$-$chocolate liquor base is further processed into milk chocolate.

Every $90$ gallons of milk$-$chocolate liquor base yield $1,060$ pounds of milk

chocolate.

d$.$ Constant gross$-$margin percentage NRV method. Begin by entering the appropriate amounts to allocate the joint costs. $($Round the percentage to four decimal places, X$.$XXXX$\%$

Now determine the formula to compute the joint costs allocated, then enter the appropriate amounts. $($Round your answers to the nearest whole dollar.$)$

X$.$XX$\%.)$

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