Please include all steps and figures used to reach each solution.

Ramble, Inc., is a large food-processing company. It processes 159,000 pounds of peanuts in the peanuts department at a cost of $254,500 to yield 30,000 pounds of product A,

78,000 pounds of product B, and 15,000 pounds of product C. The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows:

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Product A is processed further in the salting department at a cost of $24,000. It yields 30,000 pounds of salted peanuts, which are sold for $6 per pound.

Product B (raw peanuts) is sold without further processing at $8 per pound.

Product C is considered a byproduct and is processed further in the paste department at a cost of $14,000. It yields 15,000 pounds of peanut butter, which are sold for $7 per pound.

Figure

$254,500		30,000 pounds 15,000 pounds	$24,000 Salting Department Processing		30,000 $6/lb Salted Peanuts pounds
of 159,000 lb Processing Peanuts Department					78,000 $8/lb Raw Peanuts pounds
			$14,000 ProcessingPaste Department		15,000 $7/lb Peanut Butterpounds
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Requirements

1.	Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B.
2.	Compute unit costs per pound for products A, B, and C, treating all three as joint products and allocating joint costs by the NRV method.

Requirement 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the

NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Let's begin by determining the formula to compute the joint costs allocated for product C by entering the appropriate amounts.

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Joint costs allocated