Netzone Company Is in Semiconductor Industry and Fabrication of Silicon-Wafer

question 59

Multiple Choice

Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year:

The cost of purchasing 300 kgs of direct materials and processing it up to the split-off point to yield a total of 18,800 chips of good products was $2,030,000. Beginning inventories totalled 150 chips for Standard and 80 chips for Premium. Ending inventory amounts reflected 150 chips of Standard and 80 chips of Premium. October costs per unit were the same as November. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated Premium chips? (Round intermediary percentages to the nearest hundredth.)

• A) $734,251
• B) $714,469
• C) $1,015,000
• D) $669,106

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Definitions:

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A type of landslide characterized by the rapid sliding of a mass of rock down a slope.

Slope Failure

A sudden movement of soil, rock, or debris down a slope due to gravity, often triggered by factors like water saturation or earthquakes.

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Permanently frozen ground that occurs in high latitude or high elevation regions on Earth.

Weathering

The process by which rocks are broken down or chemically altered by external conditions on the Earth’s surface, including factors like wind, rain, and temperature changes.