Use the Following Information to Answer the Following Questions

question 10

Multiple Choice

Use the following information to answer the following Questions
Stoney Brook Company produces two products (X and Y) 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. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows:


-If the joint production costs are allocated based on the physical-units method, the amount of joint cost assigned to product X would be:

• A) $20,000.
• B) $24,000.
• C) $30,000.
• D) $36,000.
• E) $40,000.

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Definitions:

Consumption

Utilization of products and services by household members.

Present Value

The contemporary estimate of a future monetary sum or cash flows, evaluated with a given return rate.

Investment Projects

Initiatives or plans undertaken by individuals or organizations to allocate resources with the expectation of generating future profits.

Budget Set

The collection of all possible bundles of goods and services that a consumer can afford given their income and the prices of goods.