Jagger, Inc If Jagger Uses the Physical Output Method, the Total Cost

question 97

Multiple Choice

Jagger, Inc. production begins in Department A with 1,000 kilograms of material, of which 40% goes to Department B, 50% to Department C, and the rest evaporates. From Department C, 72% goes to Department D, 24% to Department E, and the remainder is scrapped. There are no intermediate markets. By-product sales are treated as miscellaneous income. The following occurred during the month: $$\begin{array} { l r c l } \text { Department } & { \text { Costs } } & \text { Sales } & \text { Product Type } \\\text { A } & \$ 20,000 & - - - & \\\text { B } & 5,000 & \$ 10,000 & \text { By-product } \\\text { C } & 30,000 & - - & \\\text { D } & 20,000 & 60,000 & \text { Main-1 } \\\text { E } & 10,000 & 30,000 & \text { Main-2 }\end{array}$$ If Jagger uses the physical output method, the total cost of Main-1 is:

• A) $40,455
• B) $57,500
• C) $42,500
• D) $52,500

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