The Scottso Corporation produces two consumer products and a by-product. Zylon is ready for sale after split-off, while Qytol 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 Selling Additional Produced Price Processing Zylon 200,000 $2.00 0 Qytol 400,000 1.10 $40,000 By-Product 5,000 0.50 0 Required: 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. Which of the following is a weakness of the step method of service cost allocations? a. computations are more complex than the reciprocal method b. all interdepartmental services are ignored c. all intradepartmental services are ignored d. the order of service department allocation has to be determined Joint produces and byproducts are produced simultaneously by a single process or series of processes and a. joint products are salable at the split-off point, but byproducts are not b. byproducts are salable at the split-off point, but joint products are not c. the revenue from byproducts may be recognized at the time of production d. all byproducts must be allocated some portion of joint costs