A Granary Allocates the Cost of Unprocessed Wheat to the Production

question 96

Multiple Choice

A granary allocates the cost of unprocessed wheat to the production of feed,flour,and starch.For the current period,unprocessed wheat was purchased for $120,000,and the following quantities of product and sales revenues were produced. How much of the $120,000 cost should be allocated to feed if the value basis is used?

• A)$12,250.
• B)$42,000.
• C)$45,000.
• D)$70,000.
• E)$100,000.

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Definitions:

Interest Rate

The percentage charged on a loan or paid on savings over a certain period of time, reflecting the cost of borrowing or the return on savings.

Investment

An asset or item acquired with the goal of generating income or appreciation in value.

Financial Securities

Financial instruments representing some type of financial value, including stocks, bonds, and options, which can be bought and sold in financial markets.

Real GDP

A measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced.