Hurley Processors Processes Clay into Two Joint Products, Molding Foam

question 71

Multiple Choice

Hurley Processors processes clay into two joint products, molding foam and craft blocks.When processed, each pound of clay yields 20 units of foam and 80 units of blocks.Foam sells for $2 per unit and blocks sells for $1.50 per unit.The total cost to process a 100-pound batch of clay is $35.If the physical quantities method is used to allocate the joint costs, how much will be allocated to each batch of craft blocks?

• A)$1.20
• B)$28.00
• C)$8.75
• D)$120.00

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Definitions:

Vehicle

A means of transportation, typically used to refer to cars, trucks, motorcycles, and other road vehicles.

Comprehensive Component Monitor

A system in vehicular onboard diagnostics that checks the operational status of various components and subsystems to ensure they are working correctly and meet emissions standards.

Diagnostic Test

A systematic examination to determine the cause of a malfunction or disease in vehicles, computers, or biological entities.

ECM

Electronic Control Module, a term often used in automotive engineering referring to a computer that controls one or more electrical systems or subsystems in a vehicle.