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

question 36

Multiple Choice

Use the information below to answer the following question(s) .Cranbrook Chemical Ltd.manufactures two industrial compounds.In the month of May, 15,000 litres of direct material costing $160,000 were processed at a cost of $400,000.The joint process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound known as Kharton.The respective selling prices of Jarlon and Kharton are $38 and $58.Both products may be processed further.Jarlon may be processed into Jaxton at an incremental cost of $8 per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $32 per jar of the final product.The volume of jars of the final product are: 12,000 and 3,000 for Jaxton and Kraxton respectively.The selling price of Jaxton is $48 per jar.The selling price of Kraxton is $102 per jar.
-Using the physical measures method, the weightings for joint cost allocations for Jarlon and Kharton respectively are

• A)27.62% and 72.38%.
• B)80.00% and 20.00%.
• C)39.58% and 60.42%.
• D)72.38% and 27.62%.
• E)60.42% and 39.58%.

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Definitions:

Irreversibility

A characteristic of preoperational thought in which a young child thinks that nothing can be undone. A thing cannot be restored to the way it was before a change occurred.

Logical Thinking

The process of reasoning consistently and systematically to come to a conclusion.

Taller

Having a greater height in physical stature compared to average or to another comparative baseline.

Concept

An abstract idea or a mental symbol, typically associated with a fundamental characteristic of a thing or a thought.