Rooney Chemical Company makes three products, B7, K6, and X9,which are joint products from the same materials. In a standardbatch of 374,000 pounds of raw materials, the company generates78,000 pounds of B7, 156,000 pounds of K6, and 140,000 pounds ofX9. A standard batch costs $2,992,000 to produce. The sales pricesper pound are $4, $8, and $14 for B7, K6, and X9, respectively.
Required
Allocate the joint product cost among the three final productsusing weight as the allocation base.
Allocate the joint product cost among the three final productsusing market value as the allocation base.
