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Fact Pattern: Travis Petroleum is a small company that acquires crude oil and manufactures it into three intermediate products, differing only in grade. The products
Fact Pattern: Travis Petroleum is a small company that acquires crude oil and manufactures it into three intermediate products, differing only in grade. The products are Grade One, Grade Two, and Grade Three. No beginning inventories of finished goods or work-in-process existed on November 1. The production costs for November were as follows (assume separable costs were negligible): Crude oil acquired and put into production $4,000,000 Direct labor and related costs 2,000,000 Manufacturing overhead 3,000,000 The output and sales for November were as follows: Grade One Grade Two Grade Three Barrels produced 300,000 240,000 120,000 Barrels sold 80,000 120,000 120,000 Prices per barrel sold $30 $40 $50 ne portion of Travis' joint production costs assigned to Grade One based upon the relative sales value of output is ounded to the nearest thousand dollars) A. $3,293,000 OB. $4,091,000 OC. $1,636,000 OD. $3,512,000 Directions: Select the best
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