Corn Palace Processors purchases field corn and processes it into cornmeal, corncobs, and cornhusks. Cornmeal can be processed further into corn chips. Corncobs can be processed further into animal feed. Cornhusks can be processed further into tamales. In a recent month, $500 was spent on field corn. Data regarding the products at separation and their sales values and weights, separable costs, and resulting products after further processing with their sales values are as follows:

Required
1. Use the physical units method of joint cost allocation to determine the joint costs allocated to cornmeal, corncobs, and cornhusks.
2. Use the relative sales value method of joint cost allocation to determine the joint costs allocated to cornmeal, corncobs, and cornhusks.
3. Use the net realizable method of joint cost allocation to determine the joint costs allocated to each product.
4. What is the net income if all products are sold at the split-off point?
5. What is the net income if all products are sold after further processing?
6. Manager Insight: Which products should be sold at split-off, and which should be processed further?Why?

Sales Separable Costs Sales Separation Value After Processing Value $300 $500 Co chips S 950 250 1,100 At Cornmeal 400 lbs. Corncobs 500 lbs. Cornhusks 100 lbs. 250 50 150 750 Animal feed Tamales