Texas Oil Co. transports crude oil to its refinery where it is processed into main products gasoline,

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Texas Oil Co. 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:
Texas Oil Co. transports crude oil to its refinery where

Required:
Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent.

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Principles of Cost Accounting

ISBN: 978-1305087408

17th edition

Authors: Edward J. Vanderbeck, Maria Mitchell

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