Procter & Gamble produces soap and glycerin from a joint process. In May 2043, the following costs and outputs are recorded:

• Total Joint Costs: $2,000,000
• Soap Output: 400,000 units
• Glycerin Output: 100,000 units
• Sales Value at Split-off: Soap $4,000,000, Glycerin $1,000,000

Requirements:

• Allocate joint costs using the sales value at split-off method.
• Calculate the cost per unit for each product.
• Prepare a cost allocation report.
• Discuss the implications of joint cost allocation on product pricing.