uesti = Homework: Chapter 17 Cost Allocation part 2 Question 4, E17-26 (similar to) > Part 1 of 5 HW Score: 0%, 0 of 12 points Points: 0 of 3 Save Homework: part 2 Star Company is one and selling-price inform (Click the icon to Requirement Allocate the $322,000 St. Thomas Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce crude oil, natural gas liquids (NGL), and natural gas (measured in liquid equivalents). (Click the icon to view the overview.) A federal law that has recently been passed taxes crude oil at 30% of operating income. No new tax is to be paid on natural gas liquids or natural gas. i (Click the icon to view additional information.) Read the requirements. Final sales value of Requirement 1. Allocate the August 2020 joint cost among the three products using the (a) Physical-measure method and (b) NRV method. First, allocate the August 2020 joint cost using the physical-measure method. (Round the weights to five decimal places and joint costs to the nearest cent.) Deduct separable co NRV at splitoff point Weighting Joint costs allocated Physical measure of total production Weighting Joint costs allocated Crude Oil NGL Gas Total Overview of the process and results. An overview of the process and results for August 2020 are shown here (Note: The numbers are small to keep the focus on key concepts.) Joint Costs $1,600 ICR8 Hydrocarbons Processing ING4 Separable Costs Processing $175 Crude Oil 150 barrels @ $18 per barrel Processing $105 NGL 50 barrels @ $15 per barrel Processing XGE3 $210 Print Done Natural Gas 800 eqvt. barrels @ $1.30 per eqvt. barrel