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production costs.

Requirements

Chemicals costing $$49,000$ are mixed and heated, then a unique separation

process then extracts the drug from the mixture. Abatch yields a total of $2,600$

gallons of the chemicals. The first $2,200$ gallons are sold for human use while the

last $400$ gallons, which contain impurities, are sold to veterinarians. The costs

of mixing, heating, and extracting the drug amount to $5442,000$ per batch. The

output sold for human use is pasteurized at a total cost o $$116,600$ and is sold for

$$610$ per gallon. The product sold to veterinarians is irradiated at a cost o $$15$ per

gallon and is sold for $$480$ per gallon.

How much in joint costs does Terrace allocate to each product?

Compute the cost of ending inventory for each of Terrace's products.

If Terrace were to use the constant gross$-$margin percentage NRV

method instead, how would it allocate its joint costs?

Calculate the gross margin on the sale of the product for human use in March

under the constant gross$-$margin percentage NRV method.

Suppose that the separation process also yields $280$ pints of a toxic byproduct.

Terrace currently pays a hauling company $$6,100$ to dispose of this byproduct.

Terrace is contacted by a firm interested in purchasing a modified form of this

byproduct for a total price of $$7,500.$ Terrace estimates that it will cost about

$$28$ per pint to do the required modification. Should Terrace accept the offer?

Please answer all the requirements.