Question 3 Petro-Chem Inc., is a small company that acquires high-grade crude oil from low-volume production wells owned by individuals and small partnerships. The crude oil is processed in a single refinery into Two Oil, Six Oil, and impure distillates. Petro-Chem does not have the technology or capacity to process these products further and sells most of its output cach month to major refineries. There were no beginning inventories for finished goods or work in process at the end of the period. The joint production costs of Petro-Chem for the period was $10,000,000 Production and sales: Two Oil: 300,000 barrels produced; Selling price $20/barrel Six Oil: 240,000 barrels produced, Selling price $30/barrel Distillates: 120,000 barrels produced and sold at $15/barrel Required: a) Show apportionment of joint costs and calculate the profit percentage using: a. Physical unit 15 points) b. Sales value 15 points) b) Explain four (4) ways in which by-products may be treated in the books of account (5 points) [15 points)