Each Pound of the Raw Material, Ore, Yields 5 Units

question 55

Multiple Choice

Each pound of the raw material, ore, yields 5 units of Beta and 15 units of Gamma.Ore costs $20 per pound.A pound of ore has processing costs (not including the cost of the raw material) of $30 at the split-off point.The selling price for a unit of Beta is $80.The selling price for a unit of Gamma is $40.If the relative sales value method is used to allocate the joint costs, what is the total cost allocated to each unit of Gamma?

• A)$30.00
• B)$37.50
• C)$16.00
• D)$16.67

---

Definitions:

Developmental Study

The scientific research focusing on how people grow and change over the course of their lives.

Hidden Curriculum

The lessons, values, and viewpoints that students absorb in school, which are not formally written down or officially taught, and are frequently acquired unintentionally.

Moral Development

The process through which individuals acquire values, behaviors, and thoughts about what is right and wrong.

Moral Behavior

Actions that conform to ethical principles or standards of right conduct.