Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single
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Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,000 gallons of Chem-X with a cost of $90,000. Additional information regarding a batch follows.
Oak View Chemicals uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product B-60 as other income.
RequiredThe joint cost allocated to product M-10 at Oak View Chemicals for a given batch is:a. $55,000b. $39,600c. $38,500d. $33,371e. None of the above.
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
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