Joint Products Nebraska Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 500 gallons of product A and 1,000 gallons of product B to the split-off point costs $4,560. The sales value at split-off is $10 per gallon for product A and $14 for product B. Product B requires an additional process beyond split-off at a cost of $2.50 per gallon before it can be sold.
Required What is Nebraska’s cost to produce 1,000 gallons of product B?
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