Problem - Caldwell Company produces three varieties of iron ore, X, Y, & Z from a joint processing of raw mineral iron. The amount of each product produced in the first quarter of 2001 is 50,000 pounds, 150,000 pounds, and 300,000 pounds respectively. The selling price of each product per pound is $10, $7 & $3 respectively. The joint processing cost is $800,000. The separable processing costs for each product is $40,000, $60,000 and $20,000 respectively.
Determine the following:
1. Joint cost allocated to each product X, Y, & Z using the physical volume method, relative sales value method, and net realizable value method.
2. The unit cost of each product using the net realizable value method.