Innerva Soy Products (MSP) buys soybeans and processes them into other soy products. Each ton of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Innerva Soy Products (MSP) buys soybeans and processes them into other soy products. Each ton of soybeans that MSP purchases for $350 can be converted for an additional $200 into 625 lbs of soy meal and 180 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.12 and soy oil can be sold in bulk for $4.5 per gallon. MSP can process the 625 pounds of soy meal into 725 pounds of soy cookies at an additional cost of $350. Each pound of soy cookies can be sold for $2.12 per pound. The 180 gallons of soy oil can be packaged at a cost of $220 and made into 720 quarts of Soyola Each quart of Soyola can be sold for $1.15 Read the requirements Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dolar.) Sales value of total production at splitoff Weighting Joint costs allocated Cookies/ Soy Meal Soyolal Soy Oil Total Requirements 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method 2. Should MSP have processed each of the products further? What effect does the allocation method have on this decision? Print Done Innerva Soy Products (MSP) buys soybeans and processes them into other soy products. Each ton of soybeans that MSP purchases for $350 can be converted for an additional $200 into 625 lbs of soy meal and 180 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.12 and soy oil can be sold in bulk for $4.5 per gallon. MSP can process the 625 pounds of soy meal into 725 pounds of soy cookies at an additional cost of $350. Each pound of soy cookies can be sold for $2.12 per pound. The 180 gallons of soy oil can be packaged at a cost of $220 and made into 720 quarts of Soyola Each quart of Soyola can be sold for $1.15 Read the requirements Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dolar.) Sales value of total production at splitoff Weighting Joint costs allocated Cookies/ Soy Meal Soyolal Soy Oil Total Requirements 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method 2. Should MSP have processed each of the products further? What effect does the allocation method have on this decision? Print Done
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Lucy just started a new job and her employer offers a 457 plan. She is currently 30 and plans to retire at 65, her goal is to have $1,200,000 in her 457 plan when she retires. How much does she need...
-
Outline the major suggestions that have been set forth for improving corporate governance. In your opinion, which suggestions are most important? Why?
-
All airplane passengers at the Lake City Regional Airport must pass through a security screening area before proceeding to the boarding area. The airport has three screening stations available, and...
-
Information taken from Applied Technology's comparative balance sheet is provided in the Working Papers. Your instructor will guide you through the following problem. 1. Calculate the following...
-
For the year ending December 31, 2014, Abbott Inc. reports net income $140,000 and dividends $55,000. Prepare the retained earnings statement for the year assuming the balance in retained earnings on...
-
kendall has been working with a small travel agency for the past few years to learn the business and to better understand what costs are necessary to run it. Now, having been in the business world...
-
In regression analysis, the variables used to help explain or predict the response variable are called the variables. independent dependent regression statistical Question 6 1 pts In a multiple...
-
What is the function of a steering gear?
-
Define a steering gear.
-
List the approximate straight line mechanisms.
-
Name the exact straight line mechanisms.
-
What is a pantograph? What are its uses?
-
You buy an ordinary annuity today for $147337, which promises to pay you $14942 per year. If the interest rate is 6.52 percent, for how many years will you receive payments?
-
A sprinkler head malfunctions at midfield in an NFL football field. The puddle of water forms a circular pattern around the sprinkler head with a radius in yards that grows as a function of time, in...
-
As long as human _________ exceed available _________, scarcity will exist.
-
The scarce resources that are used in the production of goods and services can be grouped into four categories: _________, _________, _________, and _________.
-
Well-defined property rights encourage a. investment. b. innovation. c. conservation. d. exchange. e. economic growth. f. all of the above.
Study smarter with the SolutionInn App