Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need the answer for this question Chemlo Corporation uses a common input (R) to produce two main products, X and Y and a byproduct,
i need the answer for this question
Chemlo Corporation uses a common input (R) to produce two main products, X and Y and a byproduct, Z.60,000 gallons of R at a cost of $120,000 yielded 20,000lbs of X,30,000lbs of Y and 10,000lbs of Z. X,Y, and Z require processing costs beyond the split-off point of $150,000,$110,000 and $10,000, respectively. After processing X can be sold for $30 per gallon, Y for $22 per gallon and Z for $3 per gallon. The NRV of the byproduct is deducted from the joint costs and the remaining joint cost is allocated to X and Y using the NRV method. The unit cost of X is: a) $2.25 per gallon b) $6.00 per gallon c) $9.75 per gallon d) $13.50 per gallon Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started