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Miller Manufacturing Company buys zeon for $.80 a liter. At the end of processing in Department 1, zeon splits off into products A, B, and
Miller Manufacturing Company buys zeon for $.80 a liter. At the end of processing in Department 1, zeon splits off into products A, B, and C. Product A is sold at the split-off point, with no further processing. Products B and C require further processing before they can be sold; product B is processed in Department 2 and product C is processed in Department 3. Following is a summary of costs and other related data for the year ended March 31, 2020: Department 2 3 Cost of zeon $ 96,000 Direct labor 14.000 Manufacturing overhead 10,000 Total $120.000 $ 0 45,000 21,000 $66.000 $ 0 65,000 49.000 $114.000 Products B A 20,000 30,000 45,000 Liters sold Liters on hand at March 31, 2020 10,000 15,000 Actual sales in dollars $30,000 $96,000 $141,750 There was no beginning or ending inventory of zeon. Miller uses the Net-Realizable-Value method of allocating joint costs. NOTE: A, B, C are Joint Products
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