Answer the Following Questions Using the Information Below

question 10

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 the physical-volume method, what is Mr. DirtOut's approximate production cost per unit?

• A)$3.02
• B)$3.08
• C)$3.14
• D)$3.22

---

Definitions:

Debtor

An individual or organization that owes money to another party, often referred to in contexts involving loans or credit.

Bankruptcy Statutes

Laws governing the process by which individuals or entities can declare their inability to pay their debts and seek relief from some or all of them.

Debtors

Individuals or entities that owe money or are indebted to another party.

Defaulting Borrower

An individual or entity that fails to meet the legal obligations of loan repayment according to the terms of the loan agreement.