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:

Variable Of Interest

The specific quantity or quality that a study aims to measure or examine.

Open-Ended Question

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Experiment

A research method involving the manipulation of one variable to determine its effect on another variable in controlled conditions.

Treatments

Specific experimental conditions applied to groups in experimental research to determine their effect on an outcome of interest.