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

question 165

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 joint costs allocated to Kharton would be

• A)$289,520.
• B)$115,808.
• C)$110,480.
• D)$154,672.
• E)$405,328.

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Definitions:

Runoff

The portion of rainfall, melted snow, or irrigation water that flows across the ground's surface and is not absorbed into the soil, often reaching rivers, lakes, and oceans.

Increasing Numbers

A term indicating a situation where the quantity or amount of a certain entity is growing over time.

Three Gorges

A region along the Yangtze River in China known for the Three Gorges Dam, the world's largest hydroelectric power station by total capacity.

China

A country in East Asia, known for its vast landscape, populous cities, and significant cultural and historical heritage.