The Marketplace Corporation produces two consumer products and a by-product. Manuka is ready for sale after split-off, while Shea must be further processed. The by-product is a heavy residue in the bottom of the vat. The net realizable value of the by-product is credited against the $565,000 joint cost of the Heating Department. Volume and cost data for February is as follows:

	Gallons produced	selling price	assertional processing
Manuka	200,000	$2	0
Shea	400,000	1.1	$40,000
By-product	5,000	0.5	0

Use Excel

a. Allocate the Heating Department cost to the products using the physical quantities method.

b. Allocate the Heating Department cost to the products using the workback method.