Use the Following Information for the Next 2 Questions

question 80

Multiple Choice

Use the following information for the next 2 questions.
Heston, Inc. produces 2 main products and a by-product. During the current month it had no beginning inventories. During the current month it incurred $185,000 of joint costs, which are allocated to main products using the physical output method. Additional information follows:
-If Heston subtracts the NRV of by-product sales from joint costs at the time of by-product sales, what is the total value of the ending inventory?

• A) $123,200
• B) $52,800
• C) $122,500
• D) $52,500

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Definitions:

Net Income

The income a company retains following the deduction of all expenses and taxes from its total revenue.

Interest Allowances

Financial incentives or reductions in interest payments designed to encourage borrowing or to alleviate the burden of interest costs.

Salary Allowances

Fixed amounts paid to employees in addition to their regular salary to cover specific needs or expenses, such as travel or living expenses.

Withdrawal

The act of removing funds from a bank account or the process of taking assets out of a business by its owner for personal use.