Answer the Following Question(s)using the Information Below

question 181

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.
-What is the reason that accountants do not like to carry inventory at net realizable value?

• A)it is the most difficult costing method
• B)income is recognized after the sale is complete
• C)income is recognized before sales are made
• D)it is never acceptable to the taxing authorities
• E)it is more difficult to count the inventory when carrying cost is different than purchase cost

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Lacking physical strength, power, or vigor; also can refer to lacking strength of character or influence.

Playground

A designated area, often outdoor, equipped for children to play in, typically with recreational equipment such as slides and swings.

Recess

A break period during the school day allowing students time for rest, play, and physical activity outside the classroom.

Societal Level

Refers to the broader cultural, economic, and political systems or structures that exist within a community or nation.