Wolf Company Processes Copper Ore into Two Products, C and U.The

question 131

Multiple Choice

Wolf Company processes copper ore into two products, C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Wolf Company plans to produce 40,000 pounds of C and 20,000 pounds of U from 60,000 pounds of ore.C sells for $30 per pound and U sells for $40 per pound.Assuming the relative-sales-value method of allocating joint costs, the amount of joint cost allocated to product C would be _____.

• A)$800,000
• B)$720,000
• C)$514,286
• D)$400,000

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Definitions:

Mathematical Mistakes

Errors made in calculations, often due to incorrect addition, subtraction, multiplication, or division, affecting the accuracy of financial statements.

Material

The quality of information that exists when the omission or misstatement of the information could influence the decision that users make.

Size

in a business or economic context typically relates to the scale or dimensions of a company or market, often measured by metrics such as revenues, employee count, or market share.