1. Vernon Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 348,000 pounds of raw materials, the company generates 78,000 pounds of B7, 166,000 pounds of K6, and 104,000 pounds of X9. A standard batch costs $3,480,000 to produce. The sales prices per pound are $6, $10, and $18 for B7, K6, and X9, respectively.

Required

Allocate the joint product cost among the three final products using weight as the allocation base.

Product	Allocation Rate	x	Weight of Base	=	Allocated Cost
B7		x		=	$0
K6		x		=	0
X9		x		=	0
Total allocated cost					$0

Allocate the joint product cost among the three final products using market value as the allocation base.

Product	Allocation Rate	x	Weight of Base	=	Allocated Cost
B7		x		=	$0
K6		x		=	0
X9		x		=	0
Total allocated cost					$0