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

question 96

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 sales value at splitoff method, the percentage weightings for joint cost allocations for Jarlon and Kharton respectively are

• A)27.62% and 72.38%.
• B)80.00% and 20.00%.
• C)39.58% and 60.42%.
• D)72.38% and 27.62%.
• E)60.42% and 39.58%.

Identify and apply the materiality constraint in accounting practices.

Describe the effects of adjustments in allowance for doubtful accounts on the realizable value of accounts receivable.

Comprehend the calculation and significance of accounts receivable turnover.

Apply the percentage of sales method and the aging of accounts receivable method for estimating bad debts.

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Definitions:

Debt To Total Assets

A financial ratio that measures the proportion of a company's assets that are financed through debt.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.