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Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing

Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 5,500 gallons of product A and 1,000 gallons of product B to the split-off point costs $6,400. The sales value at split-off is $3.00 per gallon for product A and $38.50 for product B. Product B requires an additional separable process beyond split-off at a cost of $3.00 per gallon before it can be sold. Required: What is the companys cost to produce 1,000 gallons of product B?

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