Chemical Solutions Inc. produced 15,000 gallons of Product X and 25,000 gallons of Product Y. The joint production costs were $9,200. At the split-off point, Product X has a market value of $6 per gallon and Product Y has a market value of $3 per gallon. What portion of the joint costs should be allocated to Product X using the value basis?

Chemical Solutions Inc. produced 15,000 gallons of Product X and 25,000 gallons of Product Y. The joint production costs were $9,200. At the split-off point, Product X has a market value of $6 per gallon and Product Y has a market value of $3 per gallon. What portion of the joint costs should be allocated to Product X using the value basis?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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