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:

Adapted

Modified for a new use or purpose, especially in the context of items, processes, or ideas to better suit the needs or limitations.

Bidirectional

Describes a situation or relationship where influences or actions move in both directions between parties or factors, highlighting mutual influence.

Social Cognitive Theory

The view of psychologists who emphasize behavior, environment, and cognition as the key factors in development.

Evolutionary Pressures

Forces that lead to changes in species over time through natural selection, including factors like predation, competition, and environmental changes.