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    Cost Allocation

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    Zenon Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:

    Units Produced
    Sales Value at Splitoff Point

    6,000 liters

    Paint thinner
    6,000 liters

    Spot remover
    3,000 liters

    Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used.

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