Use the Following Information for the Next 2 Questions

question 62

Multiple Choice

Use the following information for the next 2 questions.
Jagger, Inc. production begins in Department A with 1,000 pounds 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:
-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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Definitions:

Customer on Account

Transactions where a customer purchases goods or services on credit, creating an account receivable for the business.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presenting its financial performance and position at a given point in time.

Specific Date

A particular day singled out from others because of its significance or relevance to an event or action.

Supplies on Credit

The acquisition of business supplies with an agreement to pay the supplier at a later date.