Elsa Products processes Chem$-$Z into two products: Chem$-$A and Chem$-$B$.$ Chem$-$Z costs $$43,600$ per batch. The joint process produces $5,000$ units of Chem$-$A with a market value of $$157,400,$ and $15,000$ units of Chem$-$B with a market value of $$36,950.$ The conversion cost of the Joint process is $$10,000$ per batch. Elsa Products allocates joint costs using the physical quantities method. The company never holds any inventory.

Requlred:

a$.$ What cost $($total$,$ not unit$)$ and profit will be reported for each product using the current method for allocating joint costs?

b$.$ If the costs of the joint process are allocated on the basis of the net realizable value of the products, what cost $($total$,$ not unit$)$ and profit will be reported for each product?

c$.$ How much will profit at Elsa Products increase or decrease if the company switches to the net realizable value method for allocating joint process costs?

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Required B

What cost $($total$,$ not unit$)$ and profit will be reported for each product using the current method for allocating joint costs?

Note: Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign.

$\backslash$table$[[,$Chem$-$A$,$Chem$-$B$],[$Realizable value,,$],[$Allocation of joint cost,,$],[$Reported profit,,$]]$

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