Use the Following Information to Answer the Following Questions

question 23

Multiple Choice

Use the following information to answer the following Questions
Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $80,000 in the production of 20,000 gallons of P and 60,000 gallons of Q. Kingston can sell P and Q at split-off for $2.20 per gallon and $2.60 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows

-The joint cost allocated to P under the relative-sales-value method would be:

• A) $17,600.
• B) $16,400.
• C) $24,000.
• D) $25,600.
• E) None of the answers is correct.

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Definitions:

Reversals of Revaluation

An accounting process that negates a previously recorded increase or decrease in the value of an asset to reflect its current market value.

Accumulated Depreciation

The total amount of depreciation expense recorded for an asset over its useful life, reducing its book value on the balance sheet.

Fully Depreciated

Fully Depreciated refers to an asset that has reached the end of its useful life, and its book value is equal to its salvage value in the financial records.

Double Diminishing-Balance

A method of accelerated depreciation which charges depreciation at a higher rate in the early years of an asset's life.