Kingston 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. Kingston 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: PQSeparable processing costs$15,000 $35,000 Sales price (per gallon) if processed beyond split-off$3 $4 The joint cost allocated to Q under the relative-sales-value method would be:
A. $64,000.
B. $40,000.
C. $62,400.
D. $65,600.
E. None of the answers is correct.
Answer: C
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