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

question 68

Multiple Choice

Robin Company processes copper ore into two products, C and U. The ore costs $5 per pound and conversion costs are $15 per pound. Robin 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. Suppose that C cannot be sold at the split- off point. Instead it must be processed further at a cost of $100,000, after which it can be sold for $45 per pound. The amount of joint cost allocated to product C would be:

• A) $384,000
• B) $816,000
• C) $720,000
• D) $800,000

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Definitions:

Subjective Thoughts

Personal ideas, opinions, or beliefs that are based on individual feelings or perspectives rather than facts or evidence.

Polygraph

A device used in lie detection that measures and records several physiological indicators such as blood pressure, pulse, and skin conductivity while the subject is asked questions.

Electrocardiograph

A medical device used to measure the electrical activity of the heart and diagnose various heart conditions.

Myograph

A myograph is an instrument used to measure and record the force and speed of muscle contractions.