The Watson Company operates a simple chemical process to During 2020 , the selling prices of the items and the total convert a single material into three separate items, referred to here amounts sold were as follows: as X,Y, and Z. All three end products are separated simultaneously (Click the icon to view the sales information.) at a single splitoff point. (Click the icon for additional information.) Read the requirements. Products X and Y are ready for sale immediately upon splitoff without further processing or any other additional costs. Product Z, however, is processed further before being sold. There is no available market price for Z at the splitoff point. - X96 tons sold for $1,500 per ton - Y340 tons sold for $1,000 per ton - Z280 tons sold for $600 per ton The total joint manufacturing costs for the year were $410,000. Watson spent an additional $180,000 to finish product Z. There were no beginning inventories of X, Y, or Z. At the end of the year, the following inventories of completed units were on hand: X, 224 tons; Y, 60 tons; Z, 220 tons. There was no beginning or ending work in process. 1. Compute the cost of inventories of X,Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2020, using the following joint-cost-allocation methods: a. NRV method b. Constant gross-margin percentage NRV method 2. Compare the gross-margin percentages for X,Y, and Z using the two methods given in requirement 1 . Requirement 1. Compute the cost of inventories of X,Y, and Z for balance sheet purposes and the cost of goods sold for income statement purposes as of December 31, 2020, using the (a) NRV, and the (b) constant gross-margin percentage NRV cost allocation methods. (a) Start with the NRV cost allocation method. Begin by computing the net realizable value for total production at the point of splitoff and the weighting for each product. (Enter the weights to two decimal places.)