Marin Products Produces Three Products - DBB-1,DBB-2,and DBB-3 from a Joint

question 23

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-3 using the sales value at split-off 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)$939,130.
• B)$216,870.
• C)$447,205.
• D)$420,335.
• E)$2,213,665.

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Definitions:

Compounded Annually

Interest on an investment or loan that is calculated once a year and added to the principal amount, allowing the investment to grow at an increasing rate.

Discounting

The process of determining the present value of a payment or a stream of payments to be received in the future, by applying a discount rate.

Compound Annual

An interest rate calculation method that accounts for the effect of compounding over a one-year period.

Salary Growth

The increase in wages or salary over time, often due to inflation, promotion, or successful performance.