E) Some other answer 33) The Goolsby Company processes crude oil up to the splitoff point...

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E) Some other answer 33) The Goolsby Company processes crude oil up to the splitoff point where two products, gas and motor oil result. The following information was collected for the month of October: Direct Materials processed: Production: 98,000 gallons Gas 42,500 gallons Motor Oil 55,500 gallons Sales: Gas $3.50 per gallon Motor Oil $2.50 per gallon The costs of purchasing the of crude oil and processing it up to the splitoff point to yield a total of 98,000 gallons of saleable product was $184,480. There were no inventory balances of either product. Gas may be processed further to yield 42,000 gallons of a high octane product for drag racing, OctoPremium, for an additional processing cost of $4 per usable gallon. Octo Premium can be sold for $20 per gallon. Motor oil can be processed further to yield 54,200 gallons of Quality Blend, for an additional processing cost per usable gallon of $4. The product can be sold for $9 per gallon. There are no beginning and ending inventory balances. Using estimated net realizable value, what amount of the joint costs would be allocated OctoPremium and the Quality Blend? A) $672,000 and $271,000 B) $131,464 and $53,016 C) $92,240 and $92,240 D) $144,480 and $72,140 E) Some other answer E) Some other answer 33) The Goolsby Company processes crude oil up to the splitoff point where two products, gas and motor oil result. The following information was collected for the month of October: Direct Materials processed: Production: 98,000 gallons Gas 42,500 gallons Motor Oil 55,500 gallons Sales: Gas $3.50 per gallon Motor Oil $2.50 per gallon The costs of purchasing the of crude oil and processing it up to the splitoff point to yield a total of 98,000 gallons of saleable product was $184,480. There were no inventory balances of either product. Gas may be processed further to yield 42,000 gallons of a high octane product for drag racing, OctoPremium, for an additional processing cost of $4 per usable gallon. Octo Premium can be sold for $20 per gallon. Motor oil can be processed further to yield 54,200 gallons of Quality Blend, for an additional processing cost per usable gallon of $4. The product can be sold for $9 per gallon. There are no beginning and ending inventory balances. Using estimated net realizable value, what amount of the joint costs would be allocated OctoPremium and the Quality Blend? A) $672,000 and $271,000 B) $131,464 and $53,016 C) $92,240 and $92,240 D) $144,480 and $72,140 E) Some other answer