Bellaris Company produces two products, sturm and drang, from a joint process. Last month, 2,000 units of sturm and 8,000 units of drang were produced at a joint cost of $40,000. Nei¬

ther product is salable at split-off, so further processing costs amounted to $4,000 for sturm and $10,000 for drang. Sturm sells for $12 per unit and drang sells for $5 per unit.

Required:

1. Allocate the joint cost to the two products using the constant gross margin percentage method.

2. Allocate the joint cost to the two products using the net realizable value method.