Torid Company Processes 18,175 Gallons of Direct Materials to Produce

question 22

Multiple Choice

Torid Company processes 18,175 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $6 per gallon and Product Y, the main product, sells for $190 per gallon. The following information is for December:

The manufacturing costs totalled $29,000.
If the byproduct inventory is recorded at NRV less profit margin of 40%, the balance sheet will report ________ of byproduct inventory.

• A) $900
• B) $0
• C) $3800
• D) $540

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Definitions:

Hippocampus

Part of the limbic system; important in forming and retrieving declarative memories.

Autonomic Division

A part of the nervous system that controls involuntary bodily functions such as heart rate, digestion, and respiratory rate, usually divided into sympathetic and parasympathetic divisions.

Peripheral Nervous

The part of the nervous system outside the brain and spinal cord, which connects the central nervous system to limbs and organs.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.