Sparrow Company Processes Copper Ore into Two Products, C and U

question 117

Multiple Choice

Sparrow Company processes copper ore into two products, C and U. The ore costs $5 per pound and conversion costs are $15 per pound. Sparrow Company plans to produce 40,000 pounds of C and 20,000 pounds of U from 60,000 pounds of ore. C sells for $30 per pound and U sells for $40 per pound. Assuming the relative- sales- value method of allocating joint costs, the amount of joint cost allocated to product U would be:

• A) $0
• B) $685,714
• C) $480,000
• D) $400,000

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Definitions:

Hemoglobin

Hemoglobin is a protein in red blood cells responsible for transporting oxygen from the lungs to the rest of the body and returning carbon dioxide from the body to the lungs for exhalation.

Equilibrium

Equilibrium refers to a state of balance between opposing forces or actions, such as in chemical reactions reaching a state where forward and backward reaction rates are equal.

Oxygen Concentration

The amount of oxygen present in a given environment or substance, typically measured in percentages or parts per million (ppm).

Active Animal

Refers to animals that display high levels of movement or physical activity, often in search of food, mates, or as a means of avoiding predators.