A Company Produces Two Joint Products (Called 101 and 202)

question 168

Essay

A company produces two joint products (called 101 and 202) in a single operation that uses one raw material called Casko. Four hundred gallons of Casko were purchased at a cost of $800 and were used to produce 150 gallons of Product 101, selling for $5 per gallon, and 75 gallons of Product 202, selling for $15 per gallon. How much of the $800 cost should be allocated to each product, assuming that the company allocates cost based on sales revenue?

Understand the use and management of different types of files in Excel.

Comprehend the process and implications of linking and embedding data between Office applications.

Learn how to manipulate and format SmartArt and other objects in Office applications.

Know how to import, export, and manage data between Excel and other applications or formats.

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Definitions:

Stakeholders

Individuals or groups that have an interest, stake, or investment in a company and can either affect or be affected by the business’s actions, objectives, and policies.

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company.

Consumers

Individuals who purchase goods and services for personal use.

Mission Statement

A concise description of a company’s purpose, its goals, and how it serves its stakeholders.