A chemical processing plant produces three joint products: A, B, and C. The joint costs incurred for the production of these products amount to $200,000. The following information is available:

• Sales value at split-off point:
  • Product A: $100,000
  • Product B: $80,000
  • Product C: $50,000
• Units produced:
  • Product A: 5,000 units
  • Product B: 7,000 units
  • Product C: 3,000 units

a. Calculate the joint cost allocation using the sales value at split-off point method. b. Determine the joint cost allocation using the physical units method. c. Discuss the strengths and weaknesses of each allocation method