Q.3 Coffee Beverages processes coffee and bottles it as Frappuccino, Cappuccino, and American. During the year the joint costs of processing the coffee were $270,000. There were no beginning or ending inventories. Production and sales value information were as follows:

??Sales Value

Product?Cases?at Split-Off?Separable Costs?Selling Price

Frappuccino?300,000?$9 per case?$5.00 per case?$32 per case

Cappuccino?200,000?$8 per case?$3.00 per case?$30 per case

American?400,000?$7 per case?$2.00 per case?$20 per case

a.?Allocate the joint costs using the physical output method.

b.?Allocate the joint costs using the net realizable value method.

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