Unified Chemical company has a joint production process that converts Zeta into two chemicals: Alpha and Beta. The company purchases Zeta for $12 per pound and incurs a cost of $30 per pound to process it into Alpha and Beta. For every 10 pounds of Zeta, the company can produce 8 pounds of Alpha and 2 pounds of Beta. The selling price for Alpha and Beta are $76.5 and $144, respectively.

Unified Chemical generally processes Alpha and Beta further in seperable processes to produce more refined products. Alpha is processed separately into Alphalite at a cost of $20.05 per pound. Beta is processed separately into Betalite at a cost of $112.80 per pound. Alphalie and Betalite sell for $105 and $285 per pound, respevtively. In the most recent month, Unified Chemical purchased 15,000 pounds of Zeta. The company had no beginning or ending inventory of Zeta.

Required

1. Allocate the joint costs to Alphalite and Betalite under the following methods (please keep them separated!! Also please be detailed):

a. sales value at splitoff method

b. physical measures (pounds)

c. Net realizable value

d. constant gross margin percentage NRV

2. Unified Chemical is considering an opportunity to process Betalite further into a new product called ultra-betalite. The seperable processing will cost $85 per pound and expects an additional $15 per pound packaging cost for ultra-betalite. The expected selling price would be $360 per pound. Should Unified Chemical sell Betalite or Ultra-Betalite? What selling price for Ultra-betalite would make unified chemical indifferent between selling Betalite or Ultra-betalite?