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

question 53

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 net realizable value method and performs further processing after the split-off point, what is the gross profit for product R? Note: the sales values above are based on units produced.

• A) $4,603
• B) $2,936
• C) $3,224
• D) $3,603

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