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Business, 05.11.2021 17:00 MIC620

Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 4,700 gallons of product A and 1,600 gallons of product B to the split-off point costs $5,600. The sales value at split-off is $2.00 per gallon for product A and $23.50 for product B. Product B requires an additional separable process beyond split-off at a cost of $2.20 per gallon before it can be sold. Required:
What is the company’s cost to produce 1,600 gallons of product B?

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