Valdosta Chemical Company manufactures two industrial chemical products in a joint process. In May, $15,000$ gallons of input costing

$$58,000$ were processed at a cost of $$152,000.$ The joint process resulted in $10,000$ pounds of Resoline and $5,000$ pounds of Krypto.

Resoline sells for $$40$ per pound, and Krypto sells for $$60$ per pound. Management generally processes each of these chemicals

further in separable processes to produce more refined chemical products. Resoline is processed separately at a cost of $$7$ per pound.

The resulting product, Resolite, sells for $$49$ per pound. Krypto is processed separately at a cost of $$16$ per pound. The resulting

product, Kryptite, sells for $$96$ per pound.

Required:

$2-$a$.$ Allocate the company's joint production costs for May using the physical$-$units method.

$2-$b$.$ Allocate the company's joint production costs for May using the relative$-$sales$-$value method.

$2-$c$.$ Allocate the company's joint production costs for May using the net$-$realizable$-$value method.

$3-$a$.$ Valdosta's management is considering an opportunity to process Kryptite further into a new product called Omega. The separable

processing will cost $$54$ per pound. Packaging costs for Omega are projected to be $$8$ per pound, and the anticipated sales price is

$$130$ per pound. Calculate the incremental profit or loss from processing Kryptite into Omega.

$3-$b$.$ Should Kryptite be processed further into Omega?