Marin Products Produces Three Products — DBB-1, DBB-2, and DBB-3

question 85

Multiple Choice

Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.The amount of joint costs allocated to product DBB-3 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar) :

• A) $939,240.
• B) $216,870.
• C) $447,120.
• D) $757,800.
• E) $2,213,640.

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Definitions:

Repeating Decimal

A decimal fraction in which a figure or group of figures repeats indefinitely.

Percent Equivalent

A value expressed as a percentage that represents a fraction of 100, indicating a part of a whole in percentage terms.

Terminating Decimal

A numerical value expressed in the decimal system with a limited number of digits following the decimal point.

Five-Figure Accuracy

Precision to five significant digits in a numerical value or measurement.