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

question 168

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.
-Assuming Cranbrook uses the physical measures method and 2,000 containers of Jarlon and 75 containers of Kharton are unsold at the end of the period, Cranbrook would report cost of goods sold of

• A)$58,100.
• B)$506,400.
• C)$358,500.
• D)$143,400.
• E)$501,900.

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Definitions:

Developing Fruit

The growth phase of a fruit from fertilization of the ovary in plants to maturity, involving physiological and biochemical changes.

Sieve Tube Members

Plant cells that are part of the phloem, responsible for transporting sugars and other nutrients throughout the plant in a network of sieve tubes.

Nodules

In botany, swollen structures on plant roots that house symbiotic bacteria involved in the nitrogen fixation process.

Nitrogen-Fixing Bacteria

Microorganisms that convert atmospheric nitrogen into a form that plants can absorb and utilize, such as ammonia.