Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows: If Processed FurtherProductUnits MadeSales Priceat Split-Off Sales ValueSeparable CostX9,000$40,000 $78,000 $10,500 Y6,000 80,000 90,000 7,500 If the joint production costs are allocated based on the physical-units method, the amount of joint cost assigned to product X would be:
A. $36,000.
B. $24,000.
C. $20,000.
D. $30,000.
E. $40,000.
Answer: A
You might also like to view...
Which of the following is true of the Uruguay Round of the WTO?
A) It promoted short-term global trade growth. B) It increased the world's merchandise tariffs by 50 percent. C) It reduced the influence of the WTO in agriculture. D) It toughened the international protection of intellectual property. E) It consisted of discussions that lasted for two years.
The net present value method of evaluating proposed investments
a. measures a project's time-adjusted rate of return. b. discounts cash flows at the minimum desired rate of return. c. ignores cash flows beyond the payback period. d. applies only to mutually exclusive investment proposals.
Which of the following can be used to help create a better work-family balance?
a. Self-leadership b. Protean career c. Personality d. Locus of control
Which of the following would be an example of a direct materials cost?
A) windshield on a new automobile B) nails used to construct a new house C) glue used to build cabinets D) solder used to manufacture televisions