General chemical produced 12000 gallons of breon and 32000

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Reference no: EM13592342

General Chemical produced 12,000 gallons of Breon and 32,000 gallons of Baron. Joint costs incurred in producing the two products totaled $7,000. At the split-off point, Breon has a market value of $8.00 per gallon and Baron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Breon if the value basis is used.

Reference no: EM13592342

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