Hernandez Chemical Company’s production process for two of its solvents can be diagrammed using a 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.Indirect materials (Pounds)55,000Base materials (gallons)220,000Processing machine (machine hours)80,000Labor (labor hours)45,000Total Costs$400,000at split-off point:YieldSelling PriceSolvent A20,000$20Solvent B10,000$60Total30,0001. 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.