Solved: How much of the joint cost should be allocated to x15 budde, Accounting Basics

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How much of the joint cost should be allocated to x15 budde

Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which in 2008, cost $300,000. Budde produced 10,000 gallons of X15, which sells for $40 per gallon and 40,000 gallons of Z24, which sells for $20 per gallon.

How much of the joint cost should be allocated to X15?

$100,000
$200,000
$60,000
$75,000

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Accounting Basics: How much of the joint cost should be allocated to x15 budde

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Accounting Basics: How much of the joint cost should be allocated to x15 budde

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