Hermione$$s Herbs: Allocating joint costs PART $1$: Products that are not processed after the split$-$off point Suppose that Hermione manufactures two products, Shrivelfig Leaves and Shrivelfig Flower$\mathrm{.}1$ Both products result from the process of harvesting, drying, and separating the parts of the herb. The joint cost of processing the most recent months$$ volume of Shrivelfig was $$1,200,000.$ Hermione has collected the following information: Shrivelfig leaves Beginning inventory $($lbs$.)$ Production $($lbs$.)$ Sales $($lbs$.)$ Ending inventory $($lbs$.)$ Sales price per lb$.200,000175,00025,000$ $$5\mathrm{.}00$ Shrivelfig flowers $--50,00040,00010,000$ $$25\mathrm{.}00$ Required: $1.$ Use the sales value at the split$-$off point method to calculate the joint cost allocated to each product line, and gross profit per unit $($in dollars and in percentages$)$ for each product. Recall that, in this method, we allocate the joint costs in proportion to the revenue we would generate from selling all the units we manufactured this period. $1$The flowers of the Shrivelfig grow inside the fruit, both of which are purple in color. The leaves have medicinal properties. When skinned the fruit, which is actually the plant's flower and contains blossoms inside, produces a purple liquid with potion$-$making properties. ACTG $326-$ Joint Cost Allocation $$ Hermione$$s herbs $-1$ ACTG $326$: Cost Accounting $2.$ Use the physical measure method to calculate the joint cost allocated to each product line, and the gross profit per unit $($in dollars and in percentages$)$ for each product. Recall that, in this method, we allocate the joint costs in proportion to the volume of products we manufactured this period. $3.$ Compare the gross profit margins you calculated in each of the above scenarios. Which method do you think Hermione should use to calculate product costs?