Answer:
Allocating Joint Costs Using the Net Realizable Value Method
1. Joint Cost
Grades Allocation
L-Ten   $1,850
Triol      6,569
Pioze     3,881
Total $12,300
2. Joint Cost
Grades Allocation
L-Ten   $2,112
Triol      5,756
Pioze    4,432
Total $12,300
Explanation:
a) Data and Calculations:
Cost of each production run = $12,300
Product    Gallons  Further Processing     Eventual Market   Net Realizable
                                 Cost per Gallon          Price per Gallon         Value
L-Ten          3,200              $0.70                       $2.10                $4,480
Triol            3,700                  1.10                         5.40                 15,910
Pioze         2,000                  1.50                        6.20                  9,400
Total          8,900                                                                      $29,790
Allocation of join cost:
L-Ten = $4,480/$29,790 * $12,300 = $1,850
Triol = $15,910/$29,790 * $12,300 = $6,569
Pioze = $9,400/$29,790 * $12,300 = $3,881
Product    Gallons  Further Processing     Eventual Market   Net Realizable
                                 Cost per Gallon          Price per Gallon         Value
L-Ten          3,200              $0.70                       $2.10                $4,480
Triol            3,700                 2.10                         5.40                 12,210
Pioze         2,000                  1.50                        6.20                  9,400
Total          8,900                                                                      $26,090
Allocation of join cost:
L-Ten = $4,480/$26,090 * $12,300 = $2,112
Triol = $12,210/$26,090 * $12,300 = $5,756
Pioze = $9,400/$26,090 * $12,300 = $4,432