Cotton Corporation uses a joint process $($at a cost of $400,000)$ to get freshly harvested cotton ready to make into thread and yarn. At the split$-$off point, Cotton's thread can be sold for $\mathrm{.}50$ per spool and yarn for $1\mathrm{.}50$ per spool. Thread ca be processed further $($at a cost of $65,000)$ into cloth for shirts which can be sold for $5$ per yard. Yarn can be processed further $($at a cost of $235,000)$ into cloth for blankets which can be sold at $10$ per yard. Last month, $100,000$ spools of thread were produced and $300,000$ spools of yarn were produced. Thread can be processed into $20,000$ yards of cloth for shirts and yarn can be processed into $90,000$ yards of cloth for blankets.

a$.$ Using sales value at splitoff methiod, allocate the joint costs.

b$.$ Using NRV method, allocate the joint costs.

c$.$ Using the physical$-$measure method, allocate joint costs.

d$.$ Usings constant gross$-$margin percentage NRV method, allocate the joint costs.

e$.$ Is it better for Cotton Corporation to sell thread or cloth for shirts? Show calculations to support your answer.

f$.$ Is it better for Cotton Corporation to sell yarn or cloth for blankets? Show calculations to support your answer