Use the Following Information for the Next 2 Questions

question 88

Multiple Choice

Use the following information for the next 2 questions.
Major Foods, Inc. produces a cereal from oat grain. The company buys unprocessed oats for $400 per ton. It costs $60 per ton to send the oats through a processor, which produces 1,900 pounds of pure oats and 100 pounds of oat shells. The oat shells are ground and packaged at a cost of $100 per hundred pounds. They are sold to a poultry feed company for $3 per pound. The pure oats are cooked and packaged into 4-pound containers at a cost of $350. The packaged oats are sold for $2 per 4-pound container.
-If Major uses the net realizable value method, the joint costs allocated to the oats is

• A) $345
• B) $110
• C) $350
• D) $115

Understand accounting and reporting practices for capital assets and related contributions in not-for-profit organizations.

Comprehend the requirements and methods for accounting for donated goods and services in not-for-profit organizations.

Identify the purposes of using an encumbrance system in budgeting and accounting for not-for-profit entities.

Apply knowledge of differences between not-for-profit organizations and business enterprises in financial reporting.

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Definitions:

Neutral Stimulus

A neutral stimulus is something in the environment that initially does not elicit any intrinsic response until it is paired with an unconditioned stimulus.

Conditioned Stimulus

An initially neutral signal that, once it is linked with a natural stimulus, eventually elicits a learned response.

Pavlov

Ivan Pavlov, a Russian physiologist known primarily for his work in classical conditioning, particularly experiments with dogs leading to the concept of the conditioned reflex.

Neutral Stimulus (NS)

In classical conditioning, a stimulus that elicits no response before conditioning.