Please show me the steps to get the correct answer? Argon Manufacturing Company processes...
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Argon Manufacturing Company processes direct materials up to the split off point where two main products (U and V), and one by- product, X, are obtained and sold. The following information was collected for last quarter of the calendar year: Direct materials processed: 10,000 gallons (note: processing results in some shrinkage of material) Production: Product U Product V Product X 4100 gallons 4100 gallons 1900 By product Sales price: Product U $150.00 per gallon Product V $100.00 per gallon by-product Product X 10.00 per gallon The cost of purchasing 10,000 gallons of direct materials and processing it up to the split off point was $975,000. How much of the $975,000 of joint costs are allocated to the main products using the production method to account for by-product cost? You Answered Correct Answer 956,000
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