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

question 112

Multiple Choice

Use the information below to answer the following question(s) .Cranbrook Chemical Ltd.manufactures two industrial compounds.In the month of May, 15,000 litres of direct material costing $160,000 were processed at a cost of $400,000.The joint process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound known as Kharton.The respective selling prices of Jarlon and Kharton are $38 and $58.Both products may be processed further.Jarlon may be processed into Jaxton at an incremental cost of $8 per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $32 per jar of the final product.The volume of jars of the final product are: 12,000 and 3,000 for Jaxton and Kraxton respectively.The selling price of Jaxton is $48 per jar.The selling price of Kraxton is $102 per jar.
-Using the NRV method, the amount of joint costs allocated to Kraxton is

• A)$170,408.
• B)$278,280.
• C)$121,720.
• D)$389,592.
• E)$111,312.

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Definitions:

Nervous System

A complex network of nerves and cells (neurons) that transmit signals between different parts of the body, coordinating behavior, movement, and physiological processes.

Endocrine Organ

Glands in the body that release hormones directly into the bloodstream to regulate various bodily functions.

Subcutaneous Layer

The layer of tissue directly under the skin, consisting of fat and connective tissue, providing insulation and energy storage.

Adipose Tissue

A type of connective tissue that stores fat and provides insulation and cushioning for the body.