Products X,Y,and Z Are Produced from the Same Process at a Cost

question 102

Multiple Choice

Products X,Y,and Z are produced from the same process at a cost of $5,200.Five thousand pounds of raw material yields 1,500 X,2,500 Y,and 1,000 Z.Selling prices are: X $2 per unit,Y $4 per unit,Z valueless.The ending inventory of X is 50 units.What is the value of the ending inventory if joint costs are allocated using net realizable value?

• A) $21.67.
• B) $31.20.
• C) $40.00.
• D) $42.00.

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One-Year Rule

A legal principle stating certain contracts must be in writing if they cannot be performed within one year.

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