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 1,220 gallons of Chem-X with a cost of $109,800. Additional information regarding a batch follows.

							If Processed Further
Product	Units Produced			Unit Sales Value at Split-off			Additional Costs (Per Unit)			Sales Value (Per Unit)
M-10		26,840		$	5.00		$	2.00		$	6.00
M-20		17,080		$	10.00		$	4.00		$	16.00
B-60		6,100		$	0.50			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

• $67,100

• $48,312

• $46,970

• $40,713

• None of the above.