Problem $11-78($Static$)$ Joint Cost Allocation and Product Profitability $($LO $11-3,4)$

Hendricks Mining & Manufacturing is a global mineral resource company. At its Taylor site, the company mines and processes three grades of metal$$IA$,$ IB$,$ and II$$in fixed proportions. The joint costs of mining total $$2,550,000.$ In a typical month, the company will mine $136,000$ units of Grade$-$IA$,204,000$ units of Grade$-$IB$,$ and $68,000$ units of Grade$-$II metal. Market prices have been relatively stable at $$15$ per unit for Grade$-$IA$,$ $$10$ per unit for Grade$-$IB$,$ and $$2\mathrm{.}50$ per ton for Grade$-$II$.$ There are no costs to refine the individual grades of metal once it is mined.

Required:

What is the reported profitability for each grade assuming the physical quantities method is used to allocate the joint cost of production?

What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production?