General Chemical Produced 10,000 Gallons of Breon and 20,000 Gallons

Multiple Choice

General Chemical produced 10,000 gallons of Breon and 20,000 gallons of Baron. Joint costs incurred in producing the two products totaled $7,500. At the split-off point, Breon has a market value of $6.00 per gallon and Baron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Breon if the value basis is used.

A) $2,500.
B) $3,000.
C) $4,500.
D) $5,625.
E) $1,500.