Use the Following Information for the Next 4 Questions

question 11

Multiple Choice

Use the following information for the next 4 questions.
(CPA) Johnson Manufacturing Company buys Fluron for $0.80 per gallon. At the end of processing in Department 1, Fluron splits off into products Alphon, Cryon, and Runon. Alphon is sold at the split-off point, with no further processing. Cryon and Runon require further processing before they can be sold; Cryon is processed in Department 2 and Runon is processed in Department 3. Following is a summary of costs and other related data for the year ended June 30, 20x5. There were no inventories on hand at July 1, 20x4, and there was no Fluron on hand at June 30, 20x5. All gallons on hand at June 30, 20x5 were complete as to processing. Johnson uses the net realizable value method of allocating joint costs.
-The joint costs for the year ended June 30, 20x5, to be allocated are

• A) $300,000
• B) $95,000
• C) $120,000
• D) $96,000

---

Definitions:

Penny Tossed

An experiment often used to explain basic concepts of probability, usually involving the outcomes of flipping a coin.

Probability Values

Numerical measures ranging from 0 to 1, representing the likelihood or chance of a specific event occurring.

Deck

A pack of cards used in games, consisting typically of 52 pieces divided into four suits.