Answer the Following Question(s)using the Information Below

question 66

Multiple Choice

Answer the following question(s) using the information below:
The Morton Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result.The following information was collected for the month of October: The costs of purchasing the 65,000 litres of unprocessed goat milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $72,240.There were no inventory balances of either product.Condensed goat milk may be processed further to yield 19,500 litres (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable litre.Xyla can be sold for $18 per litre.Skim goat milk can be processed further to yield 28,100 litres of skim goat ice cream, for an additional processing cost per usable litre of $2.50.The product can be sold for $9 per litre.There are no beginning and ending inventory balances.
-Which method of allocating costs would be used if the selling prices of all products at the splitoff point are unavailable?

• A)sales value at splitoff method
• B)NRV method
• C)physical measures method
• D)net margin method
• E)reciprocal method

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Definitions:

Bacillus Anthracis

A bacterium that causes anthrax; it is rod-shaped and can be a serious pathogen affecting both humans and animals.

Legionella Pneumophila

A bacterium that causes Legionnaires' disease, a severe form of pneumonia, and is found naturally in freshwater environments.

Infectious Disease

Diseases caused by pathogenic microorganisms such as bacteria, viruses, parasites or fungi that can be spread, directly or indirectly, from one individual to another.

Bacteriorhodopsin

A protein found in the plasma membrane of certain bacteria that acts as a light-driven proton pump, aiding in converting light energy into chemical energy.