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Mouse & Aksel (M&A) O Company purchases crude oil and processes them into a and HD. They purchase 100,000 barrels of crude oil which yield

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Mouse & Aksel (M&A) O Company purchases crude oil and processes them into a and HD. They purchase 100,000 barrels of crude oil which yield unprocessed 45,000 barrels of Gas, 55,000 barrels of HD. The HD can be sold for $70 per barrels and the Gas for $110 per barrels at the split off point. The cost of the Crude oil is $50 per barrels. It costs $17 in conversion cost to process each barrel of crude oil to the split off point 12. Compute the Joint out allocated to Guand HD using tules value at uplit off. 13. Assume that the Gat and HD cannot be sold at split off but requires additional processing. The additional processing costs $15 per barrels, at which point the Gae can be sold for 5127 per barrels. The additional processing costs $30 per barrel, at which point the HD can be sold for $130 per barrels. Allocate the joint cost using et reliable value 14. Which one of the above product should be procent further (Gu er HD) Focus

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