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

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Definitions:

Intestinal Muscles

Muscles located in the intestines that help in the movement of food and waste through peristalsis.

Coca Leaves

Leaves of the coca plant native to South America, traditionally chewed or brewed for their stimulant and medicinal properties.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, primarily used recreationally for its psychoactive effects.

Amphetamine

A powerful stimulant used to treat conditions like ADHD by increasing attention and reducing impulsiveness and hyperactivity.