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| Whitehall Corporation produces chemicals used in the cleaning industry. During the previous month, Whitehall incurred $300,000 of joint costs in producing 60,000 units of AM-12 and 40,000 units of BM- Whitehall uses the units-of-production method to allocate joint costs. Currently, AM-12 is sold at split-off for $5.50 per unit. Flank Corporation has approached Whitehall to purchase all of the production of AM-12 after further processing. The further processing will cost Whitehall $90,Assume that Whitehall Corporation agreed to sell AM-12 to Flank Corporation for $50 per unit after further processing. During the first month of production, Whitehall sold 50,000 Assume that Whitehall Corporation agreed to sell AM-12 to Flank Corporation for $50 per unit after further processing. During the first month of production, Whitehall sold 50,000 units with 10,000?units remaining in inventory at the end of the month. With respect to AM-12, which one of the following statements is true? A. The operating profit last month was $50,000, and the inventory value is $15,000. B. The operating profit last month was $50,000, and the inventory value is $45,000. C. The operating profit last month was $125,000, and the inventory value is $30,000. D. The operating profit last month was $200,000, and the inventory value is $30,000. |