Procter & Gamble produces shampoo and conditioner from a joint process. The following data is available:

• Total Joint Costs: $500,000
• Output: 50,000 gallons of shampoo and 30,000 gallons of conditioner
• Sales Value at Split-off: Shampoo $8 per gallon, Conditioner $10 per gallon

Requirements:

1. Allocate the joint costs using the sales value at split-off method.
2. Calculate the cost per gallon for shampoo and conditioner.
3. Determine the Gross Profit for each product if shampoo is sold for $12 per gallon and conditioner for $15 per gallon.
4. Prepare a Joint Cost Allocation Report for Procter & Gamble.