Assignment:
Garage Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $80,000 in the production of 20,000 gallons of P and 60,000 gallons of Q. Garage can sell P and Q at split-off for $2.20 per gallon and $2.60 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows: P Q Separable processing costs $15,000 $35,000 Sales price (per gallon) if processed beyond split-off $3 $4.
The joint cost allocated to P under the relative-sales-value method would be:
- $17,600.
- $16,400.
- $16,400.
- $25,600.
- some other amount.
Provide complete and step by step solution for the question and show calculations and use formulas.