Indianola Beef buys sides of beef to convert into three products: steaks, roasts, and ground beef. In April, Indianola bought multiple sides of beef for $$20,000$ that were converted into the following products at a cost of $$6,400$ :

The remaining $1,200$ pounds were lost as waste.

a$.$ Allocate the joint cost to the three products using the physical units method.

Note: Round proportions to the nearest tenth of a percentage $($i$.$e$.$ round $13\mathrm{.}45\%$ to $13\mathrm{.}5\%)$ and dollar amounts to the nearest whole dollar

What problem do you find with this method?

The problem with this method is that the joint cost assigned to each product is approximately $

per pound which makes every pound of ground beef sold appear to lose

b$.$ Allocate the joint cost to the three products using the sales value at split$-$off method.

Note: Round proportions to the nearest tenth of a percentage $($i$.$e$.$ round $13\mathrm{.}45\%$ to $13\mathrm{.}59\%)$ and dollar amounts to the nearest whole dollar.

Does this allocation eliminate the problem identified in $($a$)?$

The problem mentioned in $($a$)$ is corrected with this method because the joint cost assigned to each pound of ground beef sold is now only

per pound upon the sale?

$$ per pound