Requirement $1.$ Allocate the $$5,452,000$ joint production cost to Amber, Bronze, and AT with Cobalt using the NRV method. $($Round the weighting amounts to four decimal places and

joint costs to the nearest whole dollar.$)$New Technologies manufactures a variety of flash memory chips at its main plant in Taiwan. Some chips are sold to makers of electronic equipment while others are embedded into

consumer products for sale under New's house label, AT$.$ Three of the chips that New produces arise from a common production process. The first chip, Amber, is sold to a maker of

smartphones and personal computers. The second chip, Bronze, is intended for a wireless and broadband communication firm. The third chip, Cobalt, is used to manufacture and

market a solid$-$state device under the AT name. Data regarding these three products for the fiscal year ending April $30,$ is below.

Data

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New incurred joint product costs up to the splitoff point of $$5,452,000$ during the

fiscal year. The head of New, Janya Knox, is considering a variety of alternatives

that would potentially change the way the three products are processed and sold.

Proposed changes for each product are as

follows:

Amber chips can be incorporated into New's own memory stick. However, this

additional processing causes a loss of $29,000$ units of Amber. The separable

costs to further process Amber chips are estimated to be $$744,000$ annually.

The memory stick would sell for $$5\mathrm{.}40$ per unit.

New's R&D unit has recommended that the company process Bronze further

into a $3$D vertical chip and sell it to a high$-$end vendor of datacentre products.

The additional processing would cost $$1,000,100$ annually and would result

in $15\%$ more units of product. The $3$D vertical chip sells for $$4\mathrm{.}10$ per unit

The third chip is currently incorporated into a solid$-$state device under the AT

name. Galaxy Electronics has approached New with an offer to purchase this

chip at the splitoff point for $$2\mathrm{.}55$ per unit.