Reference: 22_01 Joint Products a and B Are Produced in a Single

question 105

Multiple Choice

Reference: 22_01
Joint products A and B are produced in a single operation from Material M. Three hundred gallons of Material M, costing $450, produced 200 gallons of Product A, selling for $2 per gallon, and 100 gallons of Product B, selling for $6 per gallon.
-The portion of the $450 cost that should be allocated to Product A using the value basis of allocation is:

• A) $0
• B) $180
• C) $225
• D) $300
• E) $425

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Definitions:

Labor Costs

The total amount of money businesses spend on employee salaries, wages, benefits, and compensation.

Priceless Moments

Moments that hold exceptional sentimental or emotional value that cannot be quantified by monetary means.

Figurines

Small statues or sculpted representations, often collected as a hobby or used for decorative purposes.

Plastic

A synthetic material made from a wide range of organic polymers that can be molded into shape when soft and then set into a rigid or slightly elastic form.