A company processes a chemical, DX-1, through a pressure treatment operation

QUESTION

A company processes a chemical, DX-1, through a pressure treatment operation. The complete process has two outputs, L and T. The January costs to process DX-1 are $50,000 for materials and $100,000 for conversion costs. The processing results in two outputs, L and T, that sell for a total of $250,000. The sales revenue from L amounts to $200,000 of the total. Using the net realizable method, assign costs to L and T for January.

ANSWER

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