Chemical Corporation produces various alcohol products in a joint production process. For the month of January, $120,000 of materials, labor, and overhead were added to produce the three main products: Q1, Q2, and Q3. The sale values were available right after the split-off point. The following diagram shows the process.

			Q1 Sales value $300,000
Joint costs $120,000			Q2 Sales value $100,000
			Q3 Sales value $20,000

Required:

Allocate the joint costs to the products using the net realizable value method.

Calculate the gross margin for each product. (You can show 2 different schedules or combine it into one chart. I have inserted one chart for you.)

Product
Q1
Q2
Q3
Total