Harmon Inc

question 38

Multiple Choice

Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $75,000 was as follows:The amount of joint costs allocated to product M using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) :

• A) $11,250.
• B) $23,438.
• C) $33,434.
• D) $40,313.
• E) $27,109.

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Definitions:

Sale of Goods

A transaction in which ownership of physical products is transferred from a seller to a buyer for payment.

Partial Performance

The situation where a party has completed some, but not all, of their contractual obligations.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual dealings.

Delegation

A contracting party’s (a delegator’s) transfer of his or her duty to perform to a third party who is not part of the original contract (a delegatee).