Imperial Mining is a coal company that produces three grades of coalHigh, Medium, and Lowin fixed proportions. The joint costs of mining total $2,355,000. In a typical month, the company will mine 21,520 tons of High-Grade, 32,280 tons of Medium-Grade, and 10,760 tons of Low-Grade coal. Market prices have been relatively stable at $60 per ton for High-Grade, $40 per ton for Medium-Grade, and $10 per ton for Low-Grade. There are no costs to refine the individual grades of coal 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? b. What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production?

Required A Required B What is the reported profitability for each grade assuming the physical quantities method is used to allocate the joint cost of production? High-Grade Medium-Grade Low-Grade Total Quantity (tons) Price/ton Revenue (NRV) Allocated joint cost Product profit/loss Required A Required B What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production? High-Grade Medium-Grade Low-Grade Total Quantity (tons) Price/ton Revenue (NRV) Allocated joint cost Product profit/loss