Case 17-36 Comprehensive Case on Joint Cost Allocation (LO 17-4, 17-5) 11 0.73/1.1 points awarded Valdosta Chemical Company manufactures two industrial chemical products in a joint process. In May, 16,000 gallons of input costing $67,000 were processed at a cost of $161,000. The joint process resulted in 12,000 pounds of Resoline and 4,000 pounds of Krypto. Resoline sells for $25 per pound, and Krypto sells for $50 per pound. Management generally processes each of these chemicals further in separable processes to produce more refined chemical products. Resoline is processed separately at a cost of $6 per pound. The resulting product, Resolite, sells for $34 per pound. Krypto is processed separately at a cost of $15 per pound. The resulting product, Kryptite, sells for $97 per pound. Scored Req 2A Req 2B Req 20 Req Req 3B Allocate the company's joint production costs for May using the net-realizable-value method. (Round the calculation of "Relative Proporation" to the nearest percent.) Joint Products Resoline Krypto Total Allocation of Joint Cost $ 115,373 X 112,627 X $ 228,000 Req 2A Req 2B Req 2c Req 3A Req 3B Valdosta's management is considering an opportunity to process Kryptite further into a new product called Omega. The separable processing will cost $39 per pound. Packaging costs for Omega are projected to be $7 per pound, and the anticipated sales price is $136 per pound. Calculate the incremental profit or loss from processing Kryptite into Omega. Incremental loss $ (28,000) X per pound