Q.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. [1 Point]

b. Allocate the joint costs using the net realizable value method. [1 Point]

c. Allocate the joint costs using sales value at split-off point method. [1 Point]

Note: Please make the answer to be copied on Word file.