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In a joint process, 20,000 gallons of A is processed into 14,000 gallons of B and 6,000 gallons of C. The joint process costs are
In a joint process, 20,000 gallons of A is processed into 14,000 gallons of B and 6,000 gallons of C. The joint process costs are $38,000 and were allocated on the basis of gallons of product produced.. Given the following data, if the company used the relative sales value method to allocate the joint processing costs instead of on the basis of gallons of product produced, how much of the joint processing costs would be allocated to B? Allocated joint process costs Sales price per gallon at split-off point Variable cost to process further Sales price per gallon after further processing $26,600 $ 0.85 $52,000 $ 4.60 $11,400 $ 1.25 $ 6,600 $ 2.20 1 Multiple Choice 0 $8,109. 0 $14,691. 0 $23,309. 0 $29,891. 0 None of the answers is correct
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