Joint Products and Costs Van Company produces jointly two products A and B. The results of operation in 2011 were as follows:

  

   Details                                        Product A                Product B                              Total

   Production                                   3000                         5000                                 15000

  Sales value at split-off point      $30000                   $40000                            $70000

  Revenue                                       $90000                   $120000                          $210000

   Separable costs                         $15000                    $9000                              $24000

  

Joint product costs were $100000. There were no beginning inventories.

Required:

a. Allocate the joint costs using the physical output method

b. Allocate the joint costs using the sales value at split-off point method

c. Allocate the joint costs using the net realizable value method.

d. Allocate the joint costs using the constant gross margin NRV method.

e. Product B can be processed further. The cost of further process per unit is $5 per unit, and can be sold for $36 per unit. Should B product be processed further?