Algonquin Products Produces Two Products, X and Y, in a Single

question 101

Multiple Choice

Algonquin Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyond the split-off point were X-$10,000; Y-$20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit.
What is the gross profit of product Y assuming the net realizable value method is used?

• A)$45,000
• B)$16,364
• C)$13,636
• D)$30,000

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