Differential chemical produced 10,000 gallons of preon and 20,000 gallons of paron. joint costs incurred in producing the two products totaled $7,500. at the split-off point, preon has a market value of $6.00 per gallon and paron $2.00 per gallon. compute the portion of the joint costs to be allocated to preon if the value basis is used. a. $2,500. b. $3,000. c. $4,500. d. $5,625. e. $1,500.

C. $4,500

Explanation:

The portion of the joint cost for Preon allocation is shown below:

= Total joint cost for two products × (Preon cost ÷ Total cost)

where,

Total joint cost = $7,500

Preon cost = 10,000 gallons × $6 per gallon = $60,000

And, the total cost is

= 10,000 gallons × $6 per gallon + 20,000 gallons × $2 per gallon

= $60,000 + $40,000

= $100,000

So, the allocated cost equal to

= $7,500 × ($60,000 ÷ $100,000)

= $4,500

answerchemical property;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.