Iowa Soy Products buys soy beans and process them. Each ton of soy beans can be purchased for $300. At a cost of $200, each ton of soy beans is processed into 500 pounds of soy meal and 100 galons of soy oil. At the split off point, a pound of soy meal can be sold for $1.00 and soy oil can be sold for $4.00 per gallon. The joint products can be processed further. At an additional cost of $300, the soy meal can be proccesed into 500 pounds of cookies and sold for $2.00 per pound. The soy oil can be further processed at the cost of $200 into 100 gallons of Soyola. Each gallon of Soyola can be sold for $5.00 per gallon.

a. Using the Net Realizable Sales Value at Split Off method, assign the joint production costs to the two products and calculate the inventory value per unit at the Split Off Point.

b. If the products are further processed, what is the ending inventory value ?