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

question 70

Multiple Choice

Use the information below to answer the following question(s) :
Orange Paper Company processes wood pulp into two products.During February the joint costs of processing were $156,000.Production and sales value information for the month were as follows:
Paper sells for $2.85 a kilogram and cardboard sells for $3.90 a kilogram.There were no beginning inventories for April but ending inventories totalled 15,000 kilograms for paper and 18,000 kilograms for cardboard.
-How much of the Orange Paper Company joint costs should be allocated to the cardboard using the net realizable value method based on total production?

• A)$78,000
• B)$62,400
• C)$93,600
• D)$84,240
• E)$71,760

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Definitions:

Second Great Awakening

A Protestant religious revival during the early 19th century in the United States, which led to the spread of revival meetings and the establishment of new denominations and reform movements.

Catherine Beecher

An American educator known for her forthright opinions on women’s education as well as her staunch support of the inclusion of kindergarten into children’s education.

Grimké Sisters

Sarah and Angelina Grimké, 19th-century American advocates for abolitionism and women's rights.

Abolition Movement

A historical campaign, especially in the 18th and 19th centuries, aimed at ending the practice of slavery and the slave trade.