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(answered) – 1) Allocate the joint costs of $100,000 between caustic soda and

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(answered) – 1) Allocate the joint costs of $100,000 between caustic soda andDescriptionSolution downloadThe Question1)???Allocate the joint costs of $100,000 between caustic soda and Chlorine under:(a) the sales value at split-off method, and (b) the physical value method???????????????????????????????????????????????Worth 5% of the overall gradeDue by February 24th 2016.A scoring guide is provided at the end of each part.N.B. Students should note that this tutorial assignment should be submitted in a Worddocument by the due date stated above at the appropriate drop box on the Learningexchange.Inorganic Chemicals (IC) processes salt into various industrial products. In July 2012, ICincurred joint costs of $100,000 to purchase salt and convert it into two products: caustic sodaand chlorine. Although there is an active outside market for chlorine, IC processes all 800 tons ofchlorine it produces into 500 tons of PVC (polyvinyl chloride), which is then sold. There was nobeginning or ending inventories of salt, caustic soda, chlorine or PVC in July. Information forJuly 2012 production and sales follow:Joint CostsJoint costs (costs of salt and processing tosplit-off point)PVC$100,000Separable costs of processing 800 tons ofchlorine into 500 tons of PVC$20,000Caustic sodaBeginning inventory (tons)Production (tons)Transfer for further processing (tons)ChlorinePVC0001200800500800Sales (tons)Ending inventory (tons)12000Selling price per ton in active outsidemarket (for products not actually sold)Selling price per ton for products sold50000$75$50$200Required:1) Allocate the joint costs of $100,000 between caustic soda and Chlorine under: (a) the salesvalue at split-off method, and (b) the physical value method(4marks)2) Allocate the joint costs of $100,000 between caustic soda and PVC under the NRVmethod(4 marks)3) Under the 3 allocation methods in (1) and (2), what is the gross margin percentage of (a)caustic soda and (b) PVC. (2 marks)Total (10 marks