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. If the sales value at splitoff method is

used to allocate joint costs to the final products, the per gallon cost (rounded to the

nearest cent) of producing Big is

a. $5.63 per gallon.

b. $5.00 per gallon.

c. $4.50 per gallon.

d. $3.38 per gallon.