Answer the Following Questions Using the Information Below:
Torid Company

question 27

Multiple Choice

Answer the following questions using the information below:
Torid Company processes 17,500 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $5 per gallon and Product Y, the main product, sells for $150 per gallon. The following information is for December:
$\begin{array}{lccc}&\text { Production } & \text { Sales } & \begin{array}{c}\text { Beginning } \\\text { Inventory }\end{array} & \begin{array}{r}\text { Ending } \\\text { Inventory }\end{array}\\\text { Product X: } & 5,375 & 5,300 & 0 & 75 \\\text { Product Y: } & 9,975 & 9,990 & 25 & 10\end{array}$ The manufacturing costs totalled $25,000.
-If the byproduct inventory is recorded at NRV less profit margin of 20%,the balance sheet will report ________ of byproduct inventory.

• A) $375
• B) $0
• C) $1,500
• D) $300

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Definitions:

Negative Association

An interaction between two variables characterized by the increase of one variable leading to the decrease of the other.

Little or No Association

A statistical term indicating minimal to no correlation between two variables.

Sales

The activities or transactions involved in the selling of goods or services in exchange for money or other compensation.

Marketing

The business process of promoting, selling, and distributing a product or service, including market research and advertising.