As the manager of the granite-crushing division, Thomas has.

As the manager of the granite-crushing division, Thomas has just recently started evaluating product profitability. The joint process for his division generates Grade 1 and Grade 2 granite pieces. Both grades at this point can be sold as-is, or Grade 2 can be processed further into Grade 3 (a stabilizer is added while it’s further processed into very fine pieces). The quantities, costs, and sales values for the different grades of product are as follows. Joint processing costs $61,000 Quantity of Grade 1 product at split-off 43,000 cubic yards Quantity of Grade 2 product at split-off 21,500 cubic yards Sales value of Grade 1 at split-off $1 per cubic yd Sales value of Grade 2 at split-off $2 per cubic yd Cost to further process Grade 2 $16,125 Final sales value of Grade 3 $80,625 (a) V Your answer is correct. Calculate how much joint cost would be allocated to each product when using (1) the sales value at split-off method and (2) the NRV method. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) (1) The sales value at split-off method Grade 1 Grade 2

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