12, Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same process, which last year, cost $240,000. Anderson produced 20,000 gallons of Gorp, which sells for $60 per gallon and 60,000 gallons of Gumm, which sells for $30 per gallon. After the split-off point, Gorp required additional processing costing $300,000 to make it salable. Using the adjusted sales method, how much of the joint cost should be allocated to Gorp?

Note: in calculating your answer, round the % of sales value two places past the decimal (example 16.66%). Your final answer will be close to one of the four answers below, but will not be exact.

		$60,000
		$160,000
		$80,000
		$96,000

13, Daniel LLC incurred costs of $43,000 for material; $26,000 for labor; and $23,000 for factory overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred out. The total cost per unit is:

$8.60

$5.20

$18.40

$4.60

23. Which of the following is most likely to be accounted for as a by-product?

		Heating oil resulting from processing crude oil at a refinery.
		Cream resulting from processing raw milk at a dairy.
		Sawdust resulting from processing lumber at a lumber mill.
		Ground beef resulting from processing beef at a meat packer.

25. In a process cost system, a cost object is usually a:

a. Specific product

b. job

c. department

d.employee