The following questions are based on Durango, Inc., which manufactures products X, Y, and Z from a joint process. Joint product costs were $63,000. Additional information is provided below.

a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what were the total costs of product X (including $9,000 if processed further)?
(1) $30,000.
(2) $31,500.
(3) $36,000.
(4) $40,500.

b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what were the total costs of product Y (including the $7,000 if processed further)?
(1) $28,000.
(2) $29,050.
(3) $29,500.
(4) $32,200.

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If Processed Further Units Sales Value at Sales Additional Product Produced Split-Off Values Costs 7,000 $40,000 $55,000 $9,000 Y 5,000 35,000 45,000 7,000 Z 2,000 25,000 30,000 5,000