Can you please show me a detailed, step by step instruction on how to do this pr

Question

Can you please show me a detailed, step by step instruction on how to do this problem? Thank you.

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 4,600 gallons of product A and 1,000 gallons of product B to the split-off point costs $5,500. The sales value at split-off is $3.00 per gallon for product A and $32.20 for product B. Product B requires an additional separable process beyond split-off at a cost of $2.10 per gallon before it can be sold. Required: What is the company's cost to produce 1,000 gallons of product B? to produce 100 alon d probd 7 Product cost

Explanation / Answer

Since it was mentioned joined ocst divided based on sales price at split off

Total cost $5500 and sales price of A is $3 and sales price of B is $32.2

Prodcut cost of B= 32.2/(32.2+3)*5500=$5031.25

Additional cost is $2,1 per gallon and for 1000 gallon it is 2100

total cost=2100+5031.25=$7131.25

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