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

question 25

Multiple Choice

Use the information below to answer the following question(s) .
Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for August:
The manufacturing costs totalled $15,000.
-Which of the following entries is the initial entry to recognize a byproduct in the General ledger, based on the accounting method of recognizing byproducts at the time of production?

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Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Forecast Accuracy

The degree to which a forecast predicts actual outcomes.

Sum of Squares

A statistical technique used to measure the variation or dispersion of a set of values, by quantifying the summation of the squared differences between each value and the mean of the set.

Deseasonalized Time Series

A time series from which seasonal effects have been removed to analyze the underlying trend without seasonal variability.