The Mallak Company Produced Three Joint Products at a Joint

question 87

Multiple Choice

The Mallak Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were:
$\begin{array}{cccc}&&&\text { Additional Processing }\\\text { Product } & \text { Weight } & \text { Sales } & \text { Costs } \\ \text { P } & 300,000 \mathrm{lbs}& \$ 245,000 & \$ 200,000 \\ \text { Q } & 100,000 \mathrm{lbs} & 30,000 & -0- \\ \text { R } & 100,000 \mathrm{lbs} &175,000 &100,000 \\\end{array}$
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If the estimated net realizable value method is used and product Q is accounted for as a main product, how much of the joint costs would be allocated to product R?

• A) $38,889.
• B) $41,667.
• C) $50,000.
• D) $62,500.

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Definitions:

Net Income

The total revenue minus total expenses, indicating the company’s profit or loss over a specific accounting period.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Adjust Account Balances

The process of updating ledger accounts at the end of a period to reflect accurate financial information for reporting.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.