Anderson Compounds Produces Two Industrial Chemical Compounds,Gorp and Gumm,from the Same

Multiple Choice

Anderson Compounds produces two industrial chemical compounds,Gorp and Gumm,from the same process,which last year,cost $480,000.Anderson produced 20,000 pounds of Gorp,which sells for $60 per gallon and 60,000 gallons of Gumm,which sells for $30 per gallon.After the split-off point,Gorp required additional processing costing $300,000 to make it salable.Using the adjusted sales method,how much of the joint cost should be allocated to Gorp?

A) $120,000
B) $320,000
C) $160,000
D) $192,000