Solution-Determine the allocation of joint costs using

Determine the allocation of joint costs using adjusted sales

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Reference no: EM132562393

Boone Oil Co. Transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $500,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $5,000,000. Additional information includes:

Barrels Cost after Selling Price

Product Produced Split-off per Barrel

Gasoline 500,000 $ 200,000 $ 100

Kerosene 100,000 500,000 80

Diesel fuel 250,000 1,000, 60

Required:

Question 1: Determine the allocation of joint costs using the adjusted sales value method, rounding the sales value percentages to the nearest tenth of a percent.

Reference no: EM132562393

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Determine the allocation of joint costs using adjusted sales

Reference no: EM132562393

Reference no: EM132562393

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