Janus Company manufactures two products. Coming and Going, from a joint process. One production run costs $6,000 and results in 1,000 units of Coming and 4,000 units of Going.

Neither product is salable at split-off, but both must be further processed such that the sep¬

arable cost for Coming is $3 per unit and for Going is $2 per unit. The eventual market price for Coming is $12 and for Going, $14.

Required:

1. Allocate joint production costs to each product using the units produced method.

2. Allocate joint production costs to each product using the net realizable value method.

3. Allocate joint production costs to each product using the constant gross margin method.

4. Discuss the difference between the three methods. Which do you prefer and why?