Venezuela Oil Inc transports crude oil to its refinery where
Venezuela Oil Inc. 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 $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes:
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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