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27. General Chemical produced 12,500 gallons of Greon and 25,000 gallon of Baron. Joint costs incurred in producing the two products totaled $9,000. At the

27. General Chemical produced 12,500 gallons of Greon and 25,000 gallon of Baron. Joint costs incurred in producing the two products totaled $9,000. At the split off point, Greon has a market value of $6 per gallon and Baron $2 per gallon.

What portion of the joint costs should be allocated to Greon if the basis is market value at point of separation?

a. $5,400

b. $6,000

c. $3,000

d. $1,800

e. $3,600

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