Otto IncBegan the Current Period with No Inventories

question 89

Essay

Otto Inc.began the current period with no inventories.During the period,it processed 50,000 kilograms of materials costing $450,000.Conversion costs incurred during the period amounted to $660,000.The firm ended the period with no work in process.During the period,the firm produced 16,000,24,000,and 10,000 units of X,Y,and Z,respectively.All costs are considered joint costs.The firm sold 12,000 units of X,16,000 units of Y,and 9,000 units of Z.X sells for $30 per unit,Y for $44 per unit,and Z for $4 per unit.The firm uses the net realizable value method for cost allocation.Z is considered a by-product.
a.Discuss the following methods to account for by-products:
• other income
• replacement cost
• joint cost proration
b.Give three examples of by-products.

Differentiate between elements based on their atomic symbols.

Describe the effects and behavior of endocrine disruptors in the environment.

Investigate environmental chemistry issues, particularly related to water contamination.

Understand the concepts of primary and secondary growth in plants.

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Definitions:

Adverse Selection

A situation in finance and insurance where there is an asymmetric information problem causing bad risks to be more likely to be selected.

Moral Hazard

A situation in economics where one party can take risks because they do not have to bear the full consequences of their actions.

Limited Supervision

This term describes a work environment where employees are given the freedom to complete tasks and make decisions with minimal oversight from managers or supervisors.

Influenza Epidemic

A widespread occurrence of the influenza virus in a community at a particular time, often causing significant illness and fatalities.