Answer the Following Questions Using the Information Below

question 122

Multiple Choice

Answer the following questions using the information below:
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $760,000.
-When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean?

• A)$464,232 and $297,768
• B)$448,400 and $311,600
• C)$454,404 and $305,596
• D)$461,252 and $298,748

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Definitions:

Eminent Domain

The authority of a government to take private property for public purposes, providing payment to the property owner.

Zoning

The regulatory process of dividing land into areas with specific uses, such as residential, commercial, or industrial, to control urban development.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk regarding the quality of the goods purchased, unless they are protected by warranty.

Common Law

A body of law derived from judicial decisions of courts and similar tribunals, as opposed to statutes or constitutions.