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

question 84

Multiple Choice

Use the information below to answer the following question(s) :
Orange Paper Company processes wood pulp into two products.During February the joint costs of processing were $156,000.Production and sales value information for the month were as follows:
Paper sells for $2.85 a kilogram and cardboard sells for $3.90 a kilogram.There were no beginning inventories for April but ending inventories totalled 15,000 kilograms for paper and 18,000 kilograms for cardboard.
-How much of the Orange Paper Company joint costs should be allocated to the paper using the net realizable value method based on total production?

• A)$78,000
• B)$62,400
• C)$93,600
• D)$84,240
• E)$71,760