Great Falls Company Makes Two Products, Wool Gloves and Wool

question 125

Multiple Choice

Great Falls Company makes two products, Wool Gloves and Wool Mittens. They are initially processed from the same raw material and then, after split-off, further processed separately. Additional information is as follows:
$$\begin{array} { l r r r r } & \text { Gloves } & \text { Mittens } & \text { Total } \\\text { Final Sales Price } & \$ 9,000 & \$ 6,000 & \$ 15,000 \\\text { Joint Costs Prior to Split-Off Point } & ? & ? & \$ 6,600 \\\text { Costs Beyond Split-Off Point } & \$ 3,000 & \$ 3,000 & \$ 6,000\end{array}$$
What are the joint costs allocated to Gloves and Mittens assuming Great Falls uses the estimated net realizable value approach?
$\begin{array} { l r r } & \text { Gloves } & \text { Mittens } \\\end{array}$
A. $\begin{array} { l r r } & \$ 3,300 & \$ 3,300 \\\end{array}$
B. $\begin{array} { l r r } & \$ 3,960 & \$ 2,640 \\\end{array}$
C. $\begin{array} { l r r } & \$ 4,400 & \$ 2,200 \\\end{array}$
D. $\begin{array} { l r r } & \$ 4,560 & \$ 2,040\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Jerky Movements

Rapid, sharp actions or motions that are not smooth, often involuntary and without a steady rhythm.

Scanning

The process of systematically looking over a wide area or examining information carefully in search of something specific.

Foveal Vision

The central vision facilitated by the fovea, a small depression in the retina, contributing to sharp and detailed visual information.

Saccadic Eye Movements

Rapid movements of the eye that change the point of fixation, allowing the eyes to quickly shift from one point to another.