More info 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 spitoff point. Every 600 pounds of cocoa beans yields 20 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 20 gallons of chocolate-powder liquor base yield 680 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate Every 60 gallons of milk-chocolate liquor base yield 1,100 pounds of milk chocolate Requirements 1. Calculate how the joint costs of $70,000 would be allocated between chocolate powder and milk chocolate under the following methods Sales value at splitoff b. Physical measure (gallons) CNRV d. Constant gross-margin percentage NRV 2. What are the gross margin percentages of chocolate powder and milk chocolate under each of the methods in requirement 17 3. Could Rich and Creamy Edibles Factory have increased its operating income by a change in its decision to fully process both of its intermediate products? Show your computations More info Total b. Allocate the joint costs P Chocolate powder Milk chocolate Production 31,280 pounds 50,000 pounds Cocoa beans processed, 27,600 pounds Costs of processing cocoa beans to splitoff point (including purchase of beans), $70,000 Separable Selling Price Processing Costs Sales 6.800 pounds 14,400 pounds $8 per pound $ 59 per pound $ 46.035 55.085 Chocolate powder Milk chocolate Total - X Rich and Creamy 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, Rich and Creamy Edibles Factory: could have sold the chocolate-powder liquor base for $21 a gallon and the milk-chocolate liquor base for $28 a gallon. our decimal places.)