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

question 60

Multiple Choice

Dove Company processes copper ore into two products, C and U. The ore costs $5 per pound and conversion costs are $15 per pound. Dove 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 physical- units method of allocating joint costs, the amount of joints costs allocated to product U would be:

• A) $800,000
• B) $300,000
• C) $100,000
• D) $400,000

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Definitions:

Long-term Bonds

Debt securities that mature in more than one year, representing a long-term obligation on the part of the issuer to repay the principal along with interest.