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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Definitions:

Stream of Consciousness

A literary technique or narrative mode that attempts to capture the flow of thoughts and feelings running through the mind.

Phenomenological Flow

A state of intense focus and immersion in activities, often leading to a loss of self-awareness and a sense of time.

Thoughts

Mental processes involving reasoning, reflection, and contemplation, often part of conscious mental activities.

Canadian Psychological Association

The primary national organization for the science, practice, and education of psychology in Canada.