Joint Cost AllocationMarket Value at Split-off Method Burn-on Inc. processes crude oil to jointly produce...
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Joint Cost AllocationMarket Value at Split-off Method
Burn-on Inc. processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $15,800. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows:
Product
Unit Price
Gasoline
$2 per gallon
Diesel
1 per gallon
Kerosene
3 per gallon
Using the market value at split-off method, allocate the $15,800 joint cost of production to each product.
Joint Product
Allocation
Gasoline
$fill in the blank 1
Diesel
fill in the blank 2
Kerosene
fill in the blank 3
Totals
$fill in the blank 4
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