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The Evangeline Company makes two products, X and Y, from a common input, Z. In March, Evangeline used 30,000 pounds of Z to make 20,000 pounds of X and 10,000 pounds of Y. The cost of Z was $1.00 per pound and X and Y can be sold for $7.50 and $10.00, respectively; Evangeline incurred additional processing costs of $30,000 to further process X and $20,000 to further process Y. Using the physical quantities method, how much of the cost of Z should be allocated to X?
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The Evangeline Company makes two products, X and Y, from a common input, Z. In March, Evangeline use...
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