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Kansas Industries makes soy oil and soy meal from soy in a joint process. The soy oil can be further processed into margarine, and the soy meal can be further processed into corn muffin mix.The joint cost incurred to process the soy to the split off point was $140,000. Information on the quantities, value, and further processing costs for the joint product appears below:
Assume that the joint cost is allocated to the products based on the sales value at split off of each product.How much joint cost should be assigned to the soy oil?
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