000 GALLONS OF DUO INTO 800 GALLONS OF BIG AND 200 GALLONS OF MINI....

1,000 gallons of Duo into 800 gallons of Big and 200 gallons of Mini. The selling price

is $9 per gallon for Big and $4 per gallon for Mini. Big can be processed further into 600

gallons of Giant if $1,000 of additional processing costs are incurred. Giant can be sold

for $17 per gallon. If the net-realizable-value method were used to allocate costs to the

joint products, the total cost of producing Giant would be

66

a. $5,600.

b. $5,564.

c. $5,520.

d. $4,600.