Ramos Corporation Uses the Physical-Units Method to Allocate Costs Among

question 31

Multiple Choice

Ramos Corporation uses the physical-units method to allocate costs among its three joint products: X, Y, and Z. The following data are available for the period just ended:
Joint processing cost: $800,000
Total production: 150,000 pounds
Share of joint cost allocated to X: $160,000
Share of joint cost allocated to Y: $400,000
Which of the following statements is true?

• A) The company would have relied on the sales value of each product when allocating joint costs to X, Y, and Z.
• B) Ramos produced 30,000 pounds of Z during the period.
• C) Ramos produced 45,000 pounds of Z during the period.
• D) Ramos produced 105,000 pounds of Z during the period.
• E) Based on the data presented, it is not possible to determine Ramos' production of Z during the period.

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Definitions:

Improper Threats

Improper threats involve the use of coercion, intimidation, or unlawful pressure to force someone into an action or decision against their will.

Misrepresentation

The act of providing false or misleading information, intentionally or unintentionally, during a transaction or contractual agreement.

Fraud in the Inducement

A deception used to convince another party to agree to a transaction or contract, impacting the victim's decision-making process.

Opinion

A statement or write-up that expresses a belief, judgment, or way of thinking about something, not necessarily based on proven facts.