Question: St. Simons Silicon, LLC, produces two joint products: Chip A and Chip B. Joint production costs for the month were $40,000. During the month, further

St. Simons Silicon, LLC, produces two joint products: Chip A and Chip B. Joint production costs for the month were $40,000. During the month, further processing was necessary to convert the products into salable form. Separable costs were $25,000 for Chip A and $35,000 for Chip B. Total output for the month was 1,800 units of Chip A and 600 units of Chip B. Chip A sells for $60, and Chip B sells for $120. The company currently uses the physical units method for allocating joint costs but is considering adopting the net realizable value method. Prepare a report that shows the allocation of joint costs using both the physical units method and the net realizable value method. Compare the results, and comment on your findings.

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