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

question 55

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 Gamma?

• A)$30.00
• B)$37.50
• C)$16.00
• D)$16.67

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Definitions:

Anal Stage

In psychoanalytic theory, the second stage of psychosexual development, occurring from about 18 months to three years of age, where the focus of pleasure is on controlling bladder and bowel movements.

Oedipal Stage

A phase in Freudian psychosexual development when a child feels a desire for the opposite-sex parent and jealousy towards the same-sex parent.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Inner Voice

The internal dialogue or stream of consciousness that reflects one's thoughts, beliefs, or internal monologue.