J-M Company Uses a Joint Process Costing $15,000 to Produce

question 25

Multiple Choice

J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow: $\begin{array}{lccccc}&\text { Units }&\text {Sales Value}&\text {Separable }&\text {Sales Value After }&\text {Units }\\\text { Product}&\text { Produced }&\text {at Split-Off }&\text {Costs }&\text {Further Processing }&\text {Sold }\\\hline S & 500 & \$ 5,000 & \$ 500 & \$ 7,000 & 400 \\T & 450 & 6,000 & 650 & 9,000 & 300 \\R & 300 & 9,000 & 700 & 10,000 & 250\end{array}$ If J-M uses the physical output method to allocate joint costs and performs further processing after the split-off point, what is the gross profit for product S? Note: the sales values above are based on units produced.

• A) $1,800
• B) $500
• C) $400
• D) $(900)

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