Omega Company manufactures three chemicals in a joint process. The manufacturing costs of the joint process include $25,000 of direct materials and $35,000 of conversion costs. All three chemicals can be sold in their unrefined form immediately after the split-off point, or they can be further refined before they are sold. During May, all three chemicals were further refined. The following table shows data regarding production for the month of May:

Using the sales value at split-off method, the total joint cost allocated to chemical A in May (rounded to the nearest hundred dollars) is

a. $21,100

b. $25,000

c. $22,600

d. $25,500

e. $33,600

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Chemical A B $20 $25 $10 Sales price per litre before refining $35 $40 $18 Sales price per litre after refining Cost of refining $28,000 $10,000 $12,000 Total output of chemical at split-off 2,500 L 1,600 L 3,000 L Total output of chemical after refining 2,300 L 1,500 L 2,700 L