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Requirement $1.$ Calculate how the joint costs of $$66,000$ would be allocated between chocolate powder and milk chocolate under the different methods.

a$.$ Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. $($Round the weighting amounts to four decimal places.$)$

Requirements

Calculate how the joint costs of $$66,000$ would be allocated between chocolate powder

and milk chocolate under the following methods:

a$.$ Sales value at splitoff

b$.$ Physical measure $($gallons$)$

c$.$ NRV

d$.$ Constant gross$-$margin percentage NRV

What are the gross$-$margin percentages of chocolate powder and milk chocolate under

each of the methods in requirement $1?$

Could Cocoa Mass Edibles Factory have increased its operating income by a change in its

decision to fully process both of its intermediate products? Show your computations.

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Cocoa beans processed, $31,500$ pounds

Costs of processing cocoa beans to splitoff point $($including purchase of beans$),$ $$66,000$

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Cocoa Mass 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 $2020,$ Cocoa Mass Edibles Factory could have

sold the chocolate$-$powder liquor base for $$42$ a gallon and the milk$-$chocolate liquor base for $$52$ a gallon.

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 $2,100$ pounds of cocoa beans yields $40$ gallons of chocolate$-$powder liquor

base and $60$ gallons of milk$-$chocolate liquor base.

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

Every $40$ gallons of chocolate$-$powder liquor base yield $660$ pounds of chocolate

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

Every $60$ gallons of milk$-$chocolate liquor base yield $1,080$ pounds of milk

chocolate.

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