Joint product costing Kevelar Plastics Company makes three resins used in the manu- facture of very tough plastics. During the first week of January, the firm manufactured 1,000 gallons of Resflex, 3,000 gallons of Reslin, and 6,000 gallons of Reslon. The joint costs for the production was $18,000 for direct materials, $9,000 of direct labor, and $13,000 of manufacturing overhead. The costs after split were $5,600 for Resflex, $5,400 for Reslin, and $12,000 for Reslon. The selling prices of the products are $18, $10, and $7 per gallon respectively. If the products were sold at the point of split-off, their net realizable values would be $12 per gallon for Resflex, $8 for Reslin, and $4 for Reslon.

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REQUIRED Prepare a schedule of product costs using the following joint cost allocation methods: a. Physical units. b. Sales value. c. Gross profit. d. Net realizable value at split-off.