A food processing plant produces three joint products: Sauce, Paste, and Juice. The joint costs incurred for the production of these products amount to $150,000. The following information is available:

• Sales value at split-off point:
  • Sauce: $80,000
  • Paste: $50,000
  • Juice: $30,000
• Units produced:
  • Sauce: 10,000 units
  • Paste: 8,000 units
  • Juice: 5,000 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. Compare and contrast the results obtained from each allocation method.