Hendricks Mining & Manufacturing is a global mineral resource company. At its Taylor site, the company mines and processes three grades of metalIA, IB, and IIin fixed proportions. The joint costs of mining total $3,450,000. In a typical month, the company will mine 137,600 units of Grade-IA, 206,400 units of Grade-IB, and 68,800 units of Grade-II metal. Market prices have been relatively stable at $60 per unit for Grade-IA, $40 per unit for Grade-IB, and $10.00 per ton for Grade-II. There are no costs to refine the individual grades of metal once it is mined.

Required:

A. What is the reported profitability for each grade assuming the physical quantities method is used to allocate the joint cost of production?

Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar.

	grade-IA	grade-IB	grade-II	total
quantity ( units)
price/unit
revenue (NRV)
allocated joint cost
product profit/loss

B. What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production?

Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar.

	grade-IA	grade-IB	grade-II	total
quantity ( units)
price/ton
revenue (NRV)
allocated joint cost
product profit/loss