Use the Following Information for the Next 2 Questions

question 102

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 gross profit from the oat shells is

• A) $185
• B) $200
• C) $85
• D) $215

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Definitions:

Merging

The process of combining two or more accounts, items, or entities into one within a financial or accounting system.

Editing

The process of making changes to documents or data to correct or improve them.

Restrictions on Merging

Limitations or rules within software systems or organizational policies that govern the ability to consolidate or combine accounts, records, or data.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.