Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,700. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Further Processing Eventual Market Product Gallons Cost per Gallon Price per Gallon L-Ten 3,200 $0.70 $2.30 Triol 3,700 1.00 4.90 Pioze 2,500 1.40 6.60 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten Triol Pioze Total 2. What if it cost $2.00 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten Triol Pioze TotalAllocating Joint Costs Using the Constant Gross Margin Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $13,000. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Further Processing Eventual Market Product Gallons Cost per Gallon Price per Gallon L-Ten 3,700 $0.50 $2.00 Triol 4,000 1.00 5.00 Pioze 2,400 1.50 6.00 Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. Total Revenue Total Costs Total Gross Profit 2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost Product Allocation L-Ten Triol Pioze Total (Note: The joint cost allocation does not equal due to rounding.) 3. What if it cost $2.00 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar. Joint Cost Product Allocation L-Ten Triol Pioze Total (Note: The joint cost allocation does not equal due to rounding.)Allocating Joint Costs Using the Weighted Average Method Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc. uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of peaches: Weight Grades Pounds Factor Grade A 1,400 3. Grade B 4,000 2.0 Slices 9,000 0.5 Pureed 5,600 1.0 Total 20,000 Total joint cost is $19,000. Required: 1. Allocate the joint cost to the four grades of peaches using the weighted average method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grade B Slices Pureed Total $ (Note: The joint cost allocation does not equal $19,000 due to rounding.) 2. What if the factory found that Grade A peaches were being valued less by customers and decided to decrease the weight factor for Grade A peaches to 2.0? How would that affect the allocation of cost to Grade A peaches? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grade B Slices Pureed Total (Note: The joint cost allocation does not equal $19,000 due to rounding.)Allocating Joint Costs Using the Sales-Value-at-Split-Off Method Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning. Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc., uses the sales-value-at-split-off method of joint cost allocation and has provided the following information about the four grades of peaches: Grades Pounds Price at Split-Off (per lb.) Grade A 1,700 $6.00 Grade B 5,000 2.00 Slices 8,000 1.30 Pureed 5,300 0.80 Total 20,000 Total joint cost is $15,000. Required: 1. Allocate the joint cost to the four grades of peaches using the sales-value-at-split-off method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grade B Slices Pureed Total 2. What if the price at split-off of Grade B peaches increased to $1.60 per pound? How would that affect the allocation of cost to Grade B peaches? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grade B Slices Pureed Total