Moore Company Moore Company Produces Three Products from the Same Process and Process

question 79

Essay

Moore Company
Moore Company produces three products from the same process and incurs joint processing costs of $3,000.

	Gallons	Sales price per gallon at split-off	Disposal cost per gallon at split-off	Further processing costs	Final sales price per gallon
M	2,300	$ 4.50	$1.25	$1.00	$ 7.00
N	1,100	6.00	3.00	2.00	10.00
Q	500	10.00	8.00	2.00	15.00

Disposal costs for the products if they are processed further are:
M,$3.00;N,$5.50;Q,$1.00.
Refer to Moore Company.What amount of joint processing cost is allocated to the three products using sales value at split-off?

---

Definitions:

Passive Approach

An investment strategy or management style where decisions are minimal in an effort to mimic the returns of a particular market or index.

Aggregate Demand

The holistic demand for goods and services throughout an economy, estimated at a predetermined price level over a particular period.

Active Approach

A proactive strategy in management or policy-making that involves taking deliberate actions to achieve specific goals.

Aggregate Supply

The sum total of products and services that corporations in an economic system plan to offer for sale during a given time frame.