Russell Co

question 31

Multiple Choice

Russell Co.produces three products - U,V,and W - 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 $70,000.Sales values and costs needed to evaluate Russell's production policy follow.
The amount of joint costs allocated to product U using the physical measure 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)$19,266.
• B)$32,110.
• C)$23,333.
• D)$14,000.
• E)$32,667.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Output Per Person

A measure of productivity calculated by dividing total output (such as GDP) by the number of people in the workforce or population.

Cross Price Elasticity

A measure of how the demand for a product changes in response to a change in the price of another related product.

Customer Retention Rate

A measure of a company's ability to keep its customers over a period. It reflects the percentage of customers who remain with the company for a specific time.