) The Alden Oil Company buys crude vegetable oil. The refining of this oil results in four products, A, B and C, which are liquids and D, which is...

Required:

Assume that the net realizable value of allocating joint costs is used.  What is the net income for Products A, B, C and D?  Joint costs total P97,600.

The company had been tempted to sell at split-off directly to the other processors.  If that alternative had been selected, sales per gallon would have been: A, P0.15; B, P0.50; C, P0.80; and D, P3.00.  What would the net income be for each product under this alternative?

The company expects to operate at the same level of production and sales in the forthcoming year.  Could the company increase net income by altering its processing decisions?  If so, what would be the expected overall net income?  Which products should be processed further and which should be sold at split-off point?  Assume that all costs incurred after split-off are variable.