Petro-Chem, Inc., is a small company that acquires high-grade crude oil from low volume production wells owned by individuals and small partnerships. The crude oil is processed in a single refinery into Two Oil, Six Oil, and impure distillates. Petro-Chem does not have the technology or capacity to process these products further and sells most of its output each month to major refineries. There were no beginning finished goods or work-in-process inventories on October 1. The production costs and output of Petro-Chem for
October are as follows:
Crude oil acquired and placed into production ..... $2,500,000
Direct labor and related costs ........... 1,000,000
Manufacturing overhead ............ 1,500,000
Production and sales:
Two Oil, 150,000 barrels produced and sold at $40 each.
Six Oil, 120,000 barrels produced and sold at $60 each.
Distillates, 60,000 barrels produced and sold at $30 per barrel.

Required:
1. Calculate the amount of joint production cost that Petro-Chem would allocate to each of the three joint products by using the physical units method. (Carry out the ratio calculation to four decimal places.)
2. Calculate the amount of joint production cost that Petro-Chem would allocate to each of the three joint products by using the relative sales value method.