Reference no: EM133065758

Question - Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 4,200 gallons of product A and 1,200 gallons of product B to the split-off point costs $5,100. The sales value at split-off is $3.00 per gallon for product A and $24.50 per gallon for product B. Product B requires additional separable processing beyond the split-off point at a cost of $2.70 per gallon before it can be sold at a price of $34 per gallon. What is the company's cost to produce 1,200 gallons of product B?