Garrison Co

question 52

Multiple Choice

Garrison Co. produces three products — X, Y, and Z — 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. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to evaluate Garrison's production policy follow.The amount of joint costs allocated to product Z using the net realizable value 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) $18,773.
• B) $23,701.
• C) $30,769.
• D) $65,530.
• E) $84,766.

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Definitions:

Photovoltaic Cells

Devices that convert light energy directly into electrical energy through the photovoltaic effect, commonly used in solar panels.

Natural Gas Furnace

A heating system that burns natural gas to produce heat for space heating in residential or commercial buildings.

Passive Solar System

A design approach that utilizes the sun's energy for the heating and cooling of living spaces by exposure to the sun.

Earth Tubes

Underground pipes used to tap into the thermal stability of the earth for heating, cooling, and ventilating buildings, utilizing passive geothermal energy.