Harrow Labs produces a drug used for the treatment of arthritis. The drug is produced in batches.

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allocating joint production costs.

Read the requirements.

Requirement $1.$ How much in joint costs does Harrow allocate to each product? $($Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.$)$

Joint costs allocated to human product

Joint costs allocated to veterinarian product

Requirements

How much in joint costs does Harrow allocate to each product?

Compute the cost of ending inventory for each of Harrow's products.

If Harrow were to use the constant gross$-$margin percentage NRV

method instead, how would it allocate its joint costs?

Calculate the gross margin on the sale of the product for human use in March

under the constant gross$-$margin percentage NRV method.

Suppose that the separation process also yields $260$ pints of a toxic

byproduct. Harrow currently pays a hauling company $$6,100$ to dispose of this

byproduct. Harrow is contacted by a firm interested in purchasing a modified

form of this byproduct for a total price of $$7,300.$ Harrow estimates that it will

cost about $$40$ per pint to do the required modification. Should Harrow accept

the offer?

More info

Chemicals costing $$45,000$ are mixed and heated, then a unique separation

process then extracts the drug from the mixture. A batch yields a total of $3,600$

gallons of the chemicals. The first $3,000$ gallons are sold for human use while the

last $600$ gallons, which contain impurities, are sold to veterinarians. The costs

of mixing, heating, and extracting the drug amount to $$649,200$ per batch. The

output sold for human use is pasteurized at a total cost of $$168,000$ and is sold for

$$630$ per gallon. The product sold to veterinarians is irradiated at a cost of $$19$ per

gallon and is sold for $$490$ per gallon.