16q1 Can you me Transcribed Image Text: Indiana Soy Products (OSP) buys soybeans and processes them into other soy products

c.16q1 Can you me Transcribed Image Text: Indiana Soy Products (OSP) buys soybeans and processes them into other soy products. Each ton of soybeans that OSP purchases for $340 can be converted for an additional $170 into 650 lbs of soy meal and 80
gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.44 and soy oil can be sold in bulk for $4.25 per gallon.
OSP can process the 650 pounds of soy meal into 700 pounds of soy cookies at an additional cost of $300. Each pound of soy cookies can be sold for $2.44 per pound. The 80 gallons of soy oil can be packaged at a
cost of $250 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $1.55.
Read the requirements.
Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method.
a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three d
i
Requirements
Cookies/
Soyola/
Soy Meal
Soy Oil
Total
Sales value of total production at splitoff
1. Allocate the joint cost to the cookies and the Soyola using the following:
Weighting
a. Sales value at splitoff method
b. NRV method
Joint costs allocated
2. Should OSP have processed each of the products further? What effect does
the allocation method have on this decision?

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