Answer the Following Questions Using the Information Below

question 118

Multiple Choice

Answer the following questions using the information below:
The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 5,000 widgets; 8,750 gizmos; and 10,000 turnbols. Respective per unit selling prices at splitoff are $75, $50, and $25. Joint costs up to the splitoff point are $187,500.
-If joint costs are allocated based upon the sales value at splitoff,what amount of joint costs will be allocated to the widgets?

• A) $30,882
• B) $66,176
• C) $44,118
• D) $77,206

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Definitions:

Marginal Costs

The swelling of total charges resulting from generating an extra unit of a good or service.

Elasticity of Market Supply

An indicator of the extent to which the supply of a product varies following a price adjustment.

Marginal Cost Curves

A graphical representation that shows how the cost of producing one more unit of a good or service varies as production increases.

Market Supply Curve

A graphical representation showing the total quantity of a good or service that suppliers are willing and able to sell at different prices.