Clearwater Chemicals produced 12,000 gallons of Alpha and 15,000 gallons of Beta. Joint costs incurred in producing the two products totalled $10,000. At the split- off point, Alpha has a market value of $9 per gallon, and Beta has a market value of $6 per gallon. Compute the portion of the joint costs to be allocated to Alpha if the value basis is used. a. $6,066 b. $4,500 c. $5,455 d. $3,600

Clearwater Chemicals produced 12,000 gallons of Alpha and 15,000 gallons of Beta. Joint costs incurred in producing the two products totalled $10,000. At the split- off point, Alpha has a market value of $9 per gallon, and Beta has a market value of $6 per gallon. Compute the portion of the joint costs to be allocated to Alpha if the value basis is used. a. $6,066 b. $4,500 c. $5,455 d. $3,600

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 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...

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