04 Gateway Chemical Company has a joint production process that converts Al into two chemicals: X12 and Y12. The company purchases All for $24 per pound and incurs a cost of S60 per pound to process it into X12 and Y12. For every 10 pounds of A, the company can produce 8 pounds of X12 and 2 pounds of Y12. The selling price for X12 and Y12 are $153 and $288, respectively. Gateway Chemical generally processes X12 and Y12 further in separable processes to produce more refined products. X12 is processed separately into X13 at a cost of $50.10 per pound. Y12 is processed separately into Y13 at a cost of $225.60 per pound. X13 and Y13 sell for $420 and $570 per pound, respectively. In the most recent month, Gateway Chemical purchased 15,000 pounds ofAll Gateway Chemical is considering an opportunity to process Y13 further into a new product called Ultra-Y13. The separable processing will cost $170 per pound and expects an additional $30 per pound packaging cost for Ultra-Y13. The expected selling price would be $720 per pound The company had no beginning or ending inventory of A Required: (a) Allocate the joint costs to X13 and Y13 under the following methods: (i) Sales value at split off point (ii) Physical measure (pounds) ) Net realizable value (b) Advise Gateway Chemical whether it should sell Y13 or Ultra-Y13. Suggest the selling price for Ultra-Y13 so as to make Gateway Chemical to be indifferent between selling Y13 and Ultra-Y13