Hi. For each of the cases, please show thorough solution and explanation with good presentation for my better understanding. Also show what ifs computation.

I. A Corporation manufactures two chemicals (Flextra and Hydro) in a joint process. Data from a recent month follow.

Direct materials used: $360,000

Direct labor: $150,000

Manufacturing overhead: $690,000

Manufacturing output:

Flextra: 40,000 gallons

Hydro: 120,000 gallons

Flextra sells for $15 per gallon and Hydro sells for $20 per gallon.

Required:

A. Compute the total joint costs to be allocated to Flextra and Hydro.

B. Compute the joint costs that would be allocated to Flextra by using the physical-units method.

C. Compute the joint costs that would be allocated to Hydro by using the relative-sales-value method.

D. Assume that Hydro can be converted into a more refined product, Hydro-R, in a totally separable process at an additional cost of $4 per gallon. If the refined product can be sold in the marketplace for $26 per gallon, compute the net realizable value of Hydro-R.

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II. B Chemical manufactures two industrial chemicals in a joint process.

In October, $200,000 of direct materials were processed at a cost of $300,000, resulting in 16,000 pounds of Pentex and 4,000 pounds of Glaxco.

Pentex sells for $35 per pound and Glaxco sells for $60 per pound.

Management generally processes each of these chemicals further in separable processes to manufacture more refined products.

Pentex is processed separately at a cost of $7.50 per pound, with the resulting product, Pentex-R, selling for $45 per pound.

Glaxco is processed separately at a cost of $10 per pound, and the resulting product, Glaxco-R, sells for $100 per pound.

Required:

A. Compute the company's total joint production costs.

B. Assuming that total joint production costs amounted to $500,000, allocate these costs by using: (1) The physical-units method; (2) The relative-sales-value method; (3) The net-realizable-value method.