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The Cocoa Edibles Factory manufactures and distributes chocolate products. Production and sales data for August are as follows (assume no beginning inventory): (Click the icon to view more information about Cocoa.) (Click the icon to view the data.) Required Required 1. Calculate how the joint costs of $41,000 would be allocated between chocolate powder and milk chocolate under the following methods: a. Sales value at splitoff b. Physical measure (gallons) c. NRV (Net Realizable Value) 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 1 ? 3. Could Cocoa 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 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 splitoff point. Every 900 pounds of cocoa beans yields 40 gallons of chocolate-powder liquor base and 160 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 40 gallons of chocolate-powder liquor base yield 620 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 160 gallons of milk-chocolate liquor base yield 1,040 pounds of milk chocolate. More info - Cocoa beans processed, 15,300 pounds - Costs of processing cocoa beans to splitoff point (including purchase of beans), $41,000 Cocoa 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, Cocoa Edibles Factory could have sold the chocolate-powder liquor base for $20 a gallon and the milk-chocolate liquor base for $45 a gallon. The Cocoa Edibles Factory manufactures and distributes chocolate products. Production and sales data for August are as follows (assume no beginning inventory): (Click the icon to view more information about Cocoa.) (Click the icon to view the data.) Required Required 1. Calculate how the joint costs of $41,000 would be allocated between chocolate powder and milk chocolate under the following methods: a. Sales value at splitoff b. Physical measure (gallons) c. NRV (Net Realizable Value) 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 1 ? 3. Could Cocoa 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 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 splitoff point. Every 900 pounds of cocoa beans yields 40 gallons of chocolate-powder liquor base and 160 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 40 gallons of chocolate-powder liquor base yield 620 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 160 gallons of milk-chocolate liquor base yield 1,040 pounds of milk chocolate. More info - Cocoa beans processed, 15,300 pounds - Costs of processing cocoa beans to splitoff point (including purchase of beans), $41,000 Cocoa 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, Cocoa Edibles Factory could have sold the chocolate-powder liquor base for $20 a gallon and the milk-chocolate liquor base for $45 a gallon

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