Empire Oil and Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three intermediate products: 21B, R2D2, and C3PO. These intermediate products are further processed separately to produce crude oil, liquid natural gas, and natural gas (measured in liquid equivalents). An overview of the process and results for August are shown below.

Joint Process	Immediate Products	Total Sales Value at Split Off	Total Separable Costs	Final Products	Final Product Sales Value
	21B	$4,820	Processing $175	Crude Oil	320 barrels @ $17 per barrel
Processing Hydrocarbons Cost $3,200	R2D2	$1,310	Processing $335	LNG	50 barrels @ $31 per barrel
	C3PO	$740	Processing $380	NG	1000 equivalent barrels @ $2 each

a. Assume Empire Oil and Gas allocates joint process costs using net realizable value method. How much joint cost would be allocated to Crude Oil?

b. Assume Empire Oil and Gas allocates joint process costs using the constant gross margin percentage method. When computing the overall gross margin as a decimal, carry three decimal places. What is the inventoriable cost per barrel for Crude Oil? Round answer to two decimal places

c. Should Empire Oil and Gas sell 21B or Crude Oil? Why?