K The Cocoa Bean Edibles Factory manufactures and distributes chocolate products. (Click the icon to view more information about Cocoa Bean.) Production and sales data for August are as follows (assume no beginning inventory): (Click the icon to view the data.) Required Requirement 1. Calculate how the joint costs of $52,000 would be allocated between chocolate powder and milk chocolate under the different methods. a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Sales value of total Joint costs Chocolate powder Milk chocolate Total More info production at splitoff Weighting - allocated 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 1,600 pounds of cocoa beans yields 25 gallons of chocolate-powder liquor base and 100 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 25 gallons of chocolate-powder liquor base yield 690 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 100 gallons of milk-chocolate liquor base yield 1,110 pounds of milk chocolate. Cocoa beans processed, 24,000 pounds •Costs of processing cocoa beans to splitoff point (including purchase of beans), $52,000 Separable Selling Price Processing Costs $11 per pound $ $8 per pound $ Production Chocolate powder 10,350 pounds 16,650 pounds Sales 6,900 pounds 14,300 pounds Milk chocolate 18,150 78,000 Cocoa Bean 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 Bean Edibles Factory could have sold the chocolate-powder liquor base for $16 a gallon and the milk-chocolate liquor base for $6 a gallon. Print Done Print Done

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
K
The Cocoa Bean Edibles Factory manufactures and distributes chocolate products.
(Click the icon to view more information about Cocoa Bean.)
Production and sales data for August are as follows (assume no beginning inventory):
(Click the icon to view the data.)
Required
Requirement 1. Calculate how the joint costs of $52,000 would be allocated between chocolate powder and milk chocolate under the different methods.
a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.)
Sales value of total
Joint costs
Chocolate powder
Milk chocolate
Total
More info
production at splitoff
Weighting
-
allocated
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 1,600 pounds of cocoa beans yields 25 gallons of chocolate-powder liquor
base and 100 gallons of milk-chocolate liquor base.
The chocolate-powder liquor base is further processed into chocolate powder.
Every 25 gallons of chocolate-powder liquor base yield 690 pounds of chocolate
powder. The milk-chocolate liquor base is further processed into milk chocolate.
Every 100 gallons of milk-chocolate liquor base yield 1,110 pounds of milk
chocolate.
Cocoa beans processed, 24,000 pounds
•Costs of processing cocoa beans to splitoff point (including purchase of beans), $52,000
Separable
Selling Price Processing Costs
$11 per pound $
$8 per pound $
Production
Chocolate powder
10,350 pounds
16,650 pounds
Sales
6,900 pounds
14,300 pounds
Milk chocolate
18,150
78,000
Cocoa Bean 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 Bean Edibles Factory could have sold
the chocolate-powder liquor base for $16 a gallon and the milk-chocolate liquor base for $6 a gallon.
Print
Done
Print
Done
Transcribed Image Text:K The Cocoa Bean Edibles Factory manufactures and distributes chocolate products. (Click the icon to view more information about Cocoa Bean.) Production and sales data for August are as follows (assume no beginning inventory): (Click the icon to view the data.) Required Requirement 1. Calculate how the joint costs of $52,000 would be allocated between chocolate powder and milk chocolate under the different methods. a. Sales value at splitoff method. Begin by entering the appropriate amounts to allocate the joint costs. (Round the weighting amounts to four decimal places.) Sales value of total Joint costs Chocolate powder Milk chocolate Total More info production at splitoff Weighting - allocated 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 1,600 pounds of cocoa beans yields 25 gallons of chocolate-powder liquor base and 100 gallons of milk-chocolate liquor base. The chocolate-powder liquor base is further processed into chocolate powder. Every 25 gallons of chocolate-powder liquor base yield 690 pounds of chocolate powder. The milk-chocolate liquor base is further processed into milk chocolate. Every 100 gallons of milk-chocolate liquor base yield 1,110 pounds of milk chocolate. Cocoa beans processed, 24,000 pounds •Costs of processing cocoa beans to splitoff point (including purchase of beans), $52,000 Separable Selling Price Processing Costs $11 per pound $ $8 per pound $ Production Chocolate powder 10,350 pounds 16,650 pounds Sales 6,900 pounds 14,300 pounds Milk chocolate 18,150 78,000 Cocoa Bean 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 Bean Edibles Factory could have sold the chocolate-powder liquor base for $16 a gallon and the milk-chocolate liquor base for $6 a gallon. Print Done Print Done
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