Each Pound of the Raw Material, Ore, Yields 5 Units

question 22

Multiple Choice

Each pound of the raw material, ore, yields 5 units of Beta and 15 units of Gamma.Ore costs $20 per pound.A pound of ore has processing costs (not including the cost of the raw material) of $30 at the split-off point.The selling price for a unit of Beta is $80.The selling price for a unit of Gamma is $40.If the relative sales value method is used to allocate the joint costs, what is the total cost allocated to each unit of Beta?

• A)$12.00
• B)$20.00
• C)$33.33
• D)$12.50

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Definitions:

Id

In Freudian psychology, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Video Games

Electronic games that involve interaction with a user interface to generate visual feedback on a two- or three-dimensional video display device.

Laptop

A portable personal computer with a clamshell form factor, suitable for mobile use and equipped with a keyboard and screen.

Id

In psychoanalytic theory, a part of the mind that is the source of instinctual impulses and demands for immediate satisfaction of basic needs.