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

question 8

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-1 using the net realizable value 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) $2,009,160.
• B) $286,500.
• C) $881,640.
• D) $667,345.
• E) $709,200.

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Definitions:

Coordination

The organization of different elements or activities to ensure effective working together to achieve a common purpose or outcome.

Schedule I Drugs

Substances or chemicals defined by law as having no accepted medical use and a high potential for abuse.

FDA

The Food and Drug Administration, a U.S. federal agency responsible for protecting public health by regulating food, drugs, and medical devices.

Abuse Potential

The likelihood or propensity for a substance, particularly drugs or alcohol, to be misused or become addictive.