Use the Information Below to Answer the Following Question(s)

question 156

Multiple Choice

Use the information below to answer the following question(s) .Chem Manufacturing Company processes direct materials up to the splitoff point, where two products (X and Y) are obtained and sold.The following information was collected for the month of November.Direct materials processed:
10,000 litres (10,000 litres yield 9,500 litres of good product and 500 litres of shrinkage)
The cost of purchasing 10,000 litres of direct materials and processing it up to the splitoff point to yield a total of 9,500 litres of good products was $975,000.The beginning inventories totalled 50 litres for X and 25 litres for Y.Ending inventory amounts reflected 300 litres of product X and 525 litres of product Y.October costs were per unit were the same as November.
-What method is used when joint costs are allocated according to each item's relative proportion of weight at the splitoff point?

• A)direct proportion method
• B)proportional value method
• C)physical measure method
• D)weighted sales value method
• E)constant margin method

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Definitions:

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without the conscious intention to deceive.

Imagined Event

A scenario or occurrence that is created in the mind but has not actually happened in reality.

Explicit Memory

A type of long-term memory that involves conscious recollection of specific facts and events.

Conscious Recollection

The process of intentionally remembering or recalling information from one's past.