12-36 Joint Costs and Process MapHernandez Chemical Companys production process for two of its solvents can be diagrammed usinga process map as shown in Exhibit 12-25.The cost of the joint input, including processing costs before the split-off point, is $400,000.Solvent A can be sold at the split-off point for $20 per gallon and solvent B for $60 per gallon.1. Allocate the $400,000 joint cost to solvents A and B by the physical-units method.2. Allocate the $400,000 joint cost to solvents A and B by the relative-sales-value method.
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