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

question 133

Multiple Choice

Cardinal Company processes copper ore into two products, C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Robin 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.Suppose that C cannot be sold at the split-off point.Instead, it must be processed further at a cost of $100,000, after which it can be sold for $45 per pound.The amount of joint cost allocated to product C would be _____.

• A)$800,000
• B)$720,000
• C)$816,000
• D)$384,000

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Definitions:

Lithotomy

Lithotomy is a medical procedure or surgical position where the patient lies on their back with legs raised and apart, commonly used in gynecological and other surgeries.

AAPC

Stands for American Academy of Professional Coders, an organization providing education and certification for medical coding and billing professionals.

AHIMA

American Health Information Management Association, a professional organization in healthcare that focuses on healthcare records and health information management.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct their business with integrity and honesty.