Ron Chemicals produces four products from a joint process costing $450,000 per month. After leaving the joint process, the products must be further refined before they are salable. You have been provided with the following information:

ProductVolumeFurther Processing CostsSelling Price per Unit

A-125,000$350,000$65

B-315,000400,00082

C-220,000100,00035

Q-960,000250,00020

Required:

Allocate the joint costs using the physical units method.

1.Physical Units Method

Product:A-1B-3C-2Q-9Total

Units.................................................

Allocation %......................................

Joint cost allocated(% $)

2.Net Realizable Value Method

Product:A-1B-3C-2Q-9Total

Units.................................................

Unit price........................................... $ $ $ $

Total revenue.....................................

Less:Further processing costs

Net realizable value..........................

Allocation %......................................

Joint cost allocated(% $)*