Wolf Company Processes Copper Ore into Two Products,C and U

question 58

Multiple Choice

Wolf Company processes copper ore into two products,C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Wolf Company plans to produce 40,000 pounds of Product C and 20,000 pounds of Product U from 60,000 pounds of ore.Product C sells for $30 per pound and Product U sells for $40 per pound.Assume the company uses the relative-sales-value method of allocating joint costs.What amount of joint costs is allocated to Product C?

• A)$400,000
• B)$514,286
• C)$720,000
• D)$800,000

---

Definitions:

Team Building

The process of enhancing the cohesion and function of a team through activities and exercises designed to improve communication, trust, and collaboration among members.

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making overarching decisions and setting strategic directions.

Informal Groups

Groups that emerge naturally due to the social interactions among the people in an organization, not officially formed by the organization.

Linking Pins

A concept in which managers are seen as linking pins connecting their subordinates with their superiors, facilitating communication and coordination.