Boone Oil Company transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $500,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $5,000,000. Additional information includes:

Required:
Determine the allocation of joint costs, using the adjusted sales valuemethod.

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Product Gasoline Kerosene Diesel fuel Barrels Produced 500,000 100,000 250,000 Cost After Split-Off $2,000,000 500,000 1,000,000 Selling Price Per Barrel $25 30 20