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 are then processed further before they are sold. Other pertinent data are as follows:

Using the estimated net realizable value method, the joint costs allocated to chemical A would be

a. $16,800

b. $25,000

c. $28,800

d. $30,000

e. $33,600

Transcribed Image Text:

Final Sales Value Sales Value at Separable Costs Chemicals Split-off $50,000 $28,000 $100,000 40,000 10,000 60,000 40,000 30,000 12,000