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solution with explanation please 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
solution with explanation please
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 1,300 gallons of Chem-x with a cost of $117,000. Additional information regarding a batch follows. Product M-10 M-20 B-60 Units Produced 28,600 18,200 6,500 Unit Sales Value at Split- off $21.00 $25.00 $ 0.50 If Processed Further Additional Costs (Per Sales Value Unit) (Per Unit) $17.00 $21.00 $ 4.00 $46.00 NA NA Oak View Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs. Required: Under these assumptions, the following product(s) should be processed further and then sold: Multiple Choice M-10 Multiple Choice M-10 M-20 Both M-10 and M-20 Neither M-10 nor M-20 Cannot tell from the information givenStep by Step Solution
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