Cambridge Company Manufactures Three Main Products, L, M, and N

question 62

Multiple Choice

Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows:

Assuming that the 10,000 units of N were processed further and sold for $78,000, what was Cambridge's gross profit from this sale? Assume the physical quantities method of allocation is used.

• A) $21,000.
• B) $28,500.
• C) $30,000.
• D) $66,000.

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