Ellis Company Ellis Company Produces Two Products from a Joint

question 107

Multiple Choice

Ellis Company Ellis Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Ellis Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product X (round to the nearest dollar) ?

• A)$3,090
• B)$5,204
• C)$4,000
• D)$2,390

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Definitions:

Muscle Tissue

A tissue composed of fibers capable of contracting to produce movement in the body.

Skin Wound

A physical injury to the skin that results in damage, such as a cut, burn, or laceration.

Subcutaneous Adipose Tissue

refers to the layer of fat cells below the skin that provides insulation, energy storage, and protection.

Blood Vessel

Cylindrical vessels that transport blood throughout organs and tissues, including veins, arteries, and capillaries.