A Joint Input Costing $500 Results in Four Distinct Products

question 46

Multiple Choice

A joint input costing $500 results in four distinct products at the point of split-off. Products J, K and L are main products, and product M is a by-product. Relevant data follows: $\begin{array}{l}&\text { Sales Value }&\text { Separable }&\text { Sales Value After }\\\text { Product }&\text { at Split-Off }& \text { Cost } &\text { Further Processing }\\ \text { J (main) } &\$200&\$100&\$400\\ \text {K (main) }&300&200&600 \\ \text {L (main) } &100&-&-\\ \text {M (by-product) }&20&10&40\end{array}$
If the revenue from product M is recognized at the time of sale, what amount will be recorded as the cost of product M inventory at the time of split-off?

• A) $0
• B) $10
• C) $20
• D) $30

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