San Marino Metals buys raw ore on the open market and processes it into two products, A and B. The ore costs €10 per kilo, and the process separating it into A and B has a cost of €4 per kilo. During 20X7, San Marino plans to produce 200,000 kilos of A and 600,000 kilos of B from 800,000 kilos of ore. A sell for €30 a kilo and B for €15 a kilo. The company allocated joint costs to the individual products for inventory valuation purposes.

1. Allocate all the joint costs to A and B using the physical-units method.
2. Allocate all the joint costs to A and B using the relative-sales-value method.
3. Suppose B cannot be sold in the form in which it emerges from the joint process. Instead, it must be processed further at a fixed cost of €300,000 plus a variable cost of €1 per kilo. Then, it can be sold for €21.50 a kilo. Allocate all the joint costs to A and B using the relative-sales-value method.