PepsiCo, Inc. produces beverages in batches, including soft drinks and juices. During July 2024, the company incurs joint production costs of 2 million and produces 10,000 cases of soft drinks and 5,000 cases of juices. Soft drinks sell for $100 per case, while juices sell for $150 per case.

Required:

• Allocate joint production costs using the physical units method.
• Determine the cost per case for soft drinks and juices.
• Calculate the gross profit for each product after allocating joint costs.
• Analyze whether batch costing is appropriate for PepsiCo's product lines.
• Discuss alternative methods for allocating joint costs and their implications.