Fisher Chemicals processes a liquid into three outputs: Sigma, Tau, and Upsilon. Sigma accounts for 59 percent of the net realizable value at the split-off point, Tau accounts for 32 percent, and Upsilon accounts for the balance.

Fisher Chemicals processes a liquid into three outputs: Sigma, Tau, and Upsilon. Sigma accounts for 59 percent of the net realizable value at the split-off point, Tau accounts for 32 percent, and Upsilon accounts for the balance. The joint costs total $637,000. If Upsilon is accounted for as a by-product, its $66,000 net realizable value at split-off is credited to the joint manufacturing costs using method 1 described in the text, which credits the by-product’s net realizable value as a reduction in the joint costs.
 

Required:

a-1. What are the allocated joint costs for the three outputs, if Upsilon is accounted for as a joint product?

a-2. What are the allocated joint costs for the three outputs, if Upsilon is accounted for as a by-product?

Explanation

Thanks