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:

Pilasters

Architectural elements that resemble flat, rectangular columns or supports, projecting only slightly from a wall and serving mainly decorative purposes.

Pilgrimage Church

A church that became a destination for pilgrimages due to its relics, sacred objects, or association with a saint or religious event.

Sainte-Foy

A Romanesque church in Conques, France, known for its rich architectural detail and as a key stop on the pilgrimage route to Santiago de Compostela.

Santiago De Compostela

A city in northwestern Spain, known as the culmination point of the Camino de Santiago pilgrimage route, and the reputed burial site of Saint James the Great.