Davis Company Davis Company Produces Three Products: A, B, and C

question 75

Multiple Choice

Davis Company Davis Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.
If the products are processed further, Davis Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.
Refer to Davis Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar) ?

• A) $700
• B) $416
• C) $725
• D) $959

---

Definitions:

Misrepresentation

The act of giving a false or misleading statement about a material fact, often leading to a breach of contract.

Disaffirm

To legally reject or void a previously agreed upon contract or agreement, especially by minors.

Tort

A civil wrong that causes harm or loss, leading to legal liability for the person who commits the tortious act.

Disaffirmed

The act of denying, rejecting, or nullifying an assertion or agreement, especially in legal contexts.