The output of one of Victor Chemical Company's production processes is two solvents, Rexon and Texon. The two products cannot be separated until $410,000 of processing costs have been incurred. At that point there are 19,000 gallons of Rexon that can be sold for $18.60 per gallon and 6,000 gallons of Texon that can be sold for $36.10 per gallon.

Requirements

1. Allocate the $410,000 joint cost to Rexon and Texon by the physical-units method.

2. Allocate the $410,000 joint cost to Rexon and Texon by the relative-sales-value method

	Gallons	Weighting	Allocation of joint costs
Rexon	19000	?	?
Texon	6000	?	?
Total	25000		?

Gallons	Weighting	Allocation of joint costs
Rexon	19000	?	?
Texon	6000	?	?
Total	25000		?