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

question 55

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.
-Product X is sold for $8 a unit and Product Y is sold for $12 a unit.Each product can also be sold at the splitoff point.Product X can be sold for $5 and Product Y for $4.Joint costs for the two products totaled $4,000 for January for 600 units of X and 500 units of Y.What are the respective joint costs assigned to each unit of products X and Y if the sales value at splitoff method is used?

• A)$2.96 and $4.44
• B)$4.00 and $4.55
• C)$4.00 and $3.20
• D)$4.55 and $4.55
• E)$3.20 and $4.00

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Definitions:

Inter-Item

Pertaining to the relationship or correlation between different items or variables within a dataset or survey.

Validity

The extent to which a test, measure, or research study accurately represents or measures what it is intended to, ensuring the findings are truthful and applicable.

True Zero

A point on a scale which indicates the absolute absence of the quantity being measured.