Ojai Chemical Manufactures Two Industrial Chemicals in a Joint Process

Ojai Chemical manufactures two industrial chemicals in a joint process.In October,$200,000 of direct materials were processed at a cost of $300,000,resulting in 16,000 pounds of Pentex and 4,000 pounds of Glaxco.Pentex sells for $35 per pound and Glaxco sells for $60 per pound.Management generally processes each of these chemicals further in separable processes to manufacture more refined products.Pentex is processed separately at a cost of $7.50 per pound,with the resulting product,Pentex-R,selling for $45 per pound.Glaxco is processed separately at a cost of $10 per pound,and the resulting product,Glaxco-R,sells for $100 per pound.
Required:
A.Compute the company's total joint production costs.
A.Joint production costs total $500,000 ($200,000 + $300,000).
B.

B.Assuming that total joint production costs amounted to $500,000,allocate these costs by using:
1.The physical-units methoD.
2.The relative-sales-value methoD.
3.The net-realizable-value methoD.