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Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: $2 per gallon 1 per gallon 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product. Joint Product Allocation Gasoline Diesel Gasoline Diesel Kerosene Kerosene Totals $

Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: $2 per gallon 1 per gallon 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product. Joint Product Allocation Gasoline Diesel Gasoline Diesel Kerosene Kerosene Totals $

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 17E: Joint cost allocation-market value at split-off method Toil Oil processes crude oil to jointly...
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Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows:

Gasoline $2 per gallon
Diesel 1 per gallon
Kerosene 3 per gallon

Using the market value at split-off method, allocate the $12,000 joint cost of production to each product.

Joint Cost Allocation-Market Value at Split-off Method Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: Gasoline Diesel Kerosene $2 per gallon 1 per gallon 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product. Joint Product Allocation Gasoline Diesel Kerosene Totals
Transcribed Image Text:Joint Cost Allocation-Market Value at Split-off Method Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows: Gasoline Diesel Kerosene $2 per gallon 1 per gallon 3 per gallon Using the market value at split-off method, allocate the $12,000 joint cost of production to each product. Joint Product Allocation Gasoline Diesel Kerosene Totals
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