Use the Following Information for the Next 8 Questions

question 25

Multiple Choice

Use the following information for the next 8 questions.
HGT Corporation produces four products from a common production process. Selected data from HGT's accounting system for the four products appears below: Joint costs for the accounting period totaled $5,000. Each product line has a different product manager, who is evaluated based on product line profitability. Therefore, each manager is motivated to reduce his / her total product line costs as much as possible. The managers have been given information about potential joint cost allocations using the following three methods: physical output, sales at split-off point, and net realizable value. The managers are comparing the joint cost allocations under each method so that they can give the accountant input about their preferred method(s) .
-If HGT allocates joint costs using the sales value at split-off point method, the total joint cost allocated to full-body pillows (rounded to the nearest dollar) will be

• A) $2,439
• B) $1,250
• C) $2,039
• D) $2,239

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Definitions:

Depository Institutions Deregulation

The process of removing government restrictions on banks and other financial institutions, aimed at increasing competition and efficiency in the financial sector.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves a bank must hold against deposits.

Checkable Deposits

Bank account balances that can be easily withdrawn or used for payments without restrictions.

Credit Unions

Financial institution cooperatives made up of depositors with a common affiliation.