Exercise Seven $(10$ Points$)$:

Orange Paper Company processes wood pulp into two products. During February the joint costs of processing were $$156,000.$ Production and sales value information for the month were as shown below.

$\backslash$table$[[,$Paper,Cardboard$],[$Production $($kilograms$),,180,000,120,000,],[$Selling price per kilogram,$$,3\mathrm{.}00,$$$,5\mathrm{.}50],[$Sepreable costs,$$,250,000,$$$,186,800]]$

There were no beginning inventories for April but ending inventories totalled $15,000$ kilograms for paper and $18,000$ kilograms for cardboard.

Required:

Allocate Orange Paper Company's joint costs using:

Physical measure method

Sales value at splitoff method

Net realizable value method

$(1)$ Physical measure method:

$\backslash$table$[[$Physical measure of production,Paper,Total,$],[$Weighting$,,,],[$Joint costs allocated,,,$]]$

$(2)$ Sales value at splitoff method:

$\backslash$table$[[$Sales value at splitoff,Cardboard,Total,$],[$Weighting$,,,],[$Joint costs allocated,,,$]]$

$(3)$ Net realizable value method:

$\backslash$table$[[$NPV at splitoff,Paper,Cardboard,Total$],[$Weighting$,,,],[$Joint costs allocated,,,$]]$