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Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either
Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,340 gallons of Chem-X with a cost of $120,600. Additional information regarding a batch follows. Product M-10 M-20 B-60 Units Produced 29,480 18,760 6,700 Unit Sales Value at Split- off $ 5.ee $10.00 $ 0.50 If Processed Further Additional Costs (Per Sales Value Unit) (Per Unit) $2.ee $ 6.00 $4.00 $16.00 NA NA Oak View Chemicals uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product B-60 as other income. Required: The joint cost allocated to product M-10 at Oak View Chemicals for a given batch is: Multiple Choice O $73,700 C $53,064 O O $51,590 O $44,717 None of the above
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