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Wayne Corporation manufactures three joint products in a single process. The information below is for August 2022: Product Gallons WC-3530 4.500 Sales value at
Wayne Corporation manufactures three joint products in a single process. The information below is for August 2022: Product Gallons WC-3530 4.500 Sales value at split-off 14SAR WC-3560 18,000 WC-3590 13,500 18SAR 8SAR Cost after split-off 4SAR 5SAR 2SAR Final selling price 24SAR 15SAR 22SAR Allocate the joint cost of 600,000SAR to the production based on the following (round to the nearest whole percentage): 1. Number of gallons 2. Sales value at split-off 3. Approximate net realizable value at split-off 4. Do you see any problems with the allocation based on the net realizable value? Explain. 5. Which method seems to be the most realistic and relevant given what we know about the costs?
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