Ramble, Inc., is a large food-processing company. It processes 158,000 pounds of peanuts in the peanuts department at a cost of $249,300 to yield 25,000 pounds of product A, 75,000 pounds of product B, and 13,000 pounds of product C.

The company wants to make a gross margin of10% of revenues on product C and needs to allow20% of revenues for marketing costs on product C. An overview of operations follows:

Product A is processed further in the salting department at a cost of $25,000. It yields 25,000 pounds of salted peanuts, which are sold for $10 per pound. Product B (raw peanuts) is sold without further processing at $7 per pound. Product C is considered a byproduct and is processed further in the paste department at a cost of $11,000. It yields 13,000 pounds of peanut butter, which are sold for $8 per pound. . i 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. 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. 2. Separable Costs Toint Costs $249,300 25,000 pounds Salting Department Processing $25,000 Salted Peanuts 25,000 pounds $10/1b Peanuts Department Processing of 158,000 lb Raw Peanuts 75,000 pounds $7/1b Paste Department Processing $11,000 Peanut Butter 13,000 pounds $8/lb 13,000 pounds Splitoff Point