Save Homework: Extra Credit 20f 4 (0 complete) HW Score: 0%, 0 of 100 pts Score:

Question

Save Homework: Extra Credit 20f 4 (0 complete) HW Score: 0%, 0 of 100 pts Score: 0 of 20 pts Question Help * P16-28 (similar to) til The Rainbow Oil buys crude vegetable oil Refining this oil results in four products at the spltoff point. A B, C, and D. Product C is fully processed by the splitoff point Products A, B, and D can individually be further refined into Super A Super B, and Super D. In the most recent month (December), the output at the splitoff point was as follows (Click the icon to view the information.) Read the requirements rked Requirement 1. Compute the gross-margin percentage for each product sold in December, using the different methods for allocating the $60,000 joint costs Sco a. Sales Value at Spolitof. Begin by entering the amounts in the table and allocate tho joint costs. (Enter the woights to four decimal places ) Sales value of total Joint costs production at splitoff Weighting More Into allocated Product A, 253,000 gallons Product B, 92,000 gaions Product C, 69,000 gallons 23 Product D, 46,000 gallons The joint costs of purchasing and processing the crude vegetable oil were $60,000 Rainbow had no beginning or ending inventories. Sales of product C in December were $60,000 Products A, B, and D were further refined and then sold Data related to December are as follows at to Separable Processing Costs to Make Super Products Revenues Super A Super B Super D Acc Requirements 271000S 400,000 100,000 50,000 34,000 5,000 Compute the gross-margin percentage for each product sold in December, using the following methods for allocating the $60,000 joint costs a. Sales value at splitoff Rainbow had the option of selling products A, B, and D at the splitoff point This alternative would have yielded the following revenues for the December production c. NRV Could Rainbow have increased its December operating income by making difflerent decisions about the further processing of products A, B, or D? Show the effect on operating income of any changes you recommend Product A, $50,000 Product B, $30,000 . Product D, $60,000 PrintDone Print Done

Explanation / Answer

Workings:

Weighting = Sales value at splitoff / Total sales value at splitoff

Joint costs allocated = Weighting x Total joint costs $60000

Sales value of total
production at splitoff Weighting Joint costs
allocated A 50000 0.2500 15000 B 30000 0.1500 9000 C 60000 0.3000 18000 D 60000 0.3000 18000 200000 1.0000 60000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.